Legal Question in Real Estate Law in Georgia

Insufficient notification of lease renewal rejection

We own a newstand in a state-owned building that we had a 5 year lease on. The lease was up this year, so I had been calling since last year to give the go-ahead on the renewal (renewal terms were written into the original contract). After being giving the run-around and ''I don't knows'' for a year, I just found out that they are not going to extend the lease b/c of ''renovations'' and will not give us the option of relocating until renovations end. We paid $100,000 for the business, and now that investment will be lost and our livelihood will disappear in less than two months. They still haven't sent us written communication about this - I found this out over the phone. Do we have any options here? Thank you very much for your answer.


Asked on 3/13/02, 1:19 pm

1 Answer from Attorneys
Hugh Wood Wood & Meredith

Re: Insufficient notification of lease renewal rejection

In Ga. there is no residential right to renew and there clearly is no commercial right to renew. You need to look very carefully to your original lease to see if you have any contractual rights to force them to renew or lease you a new location. Also, look to the documents to whom you paid 100K (which may be the state) to see if you have any rights under that document. If none, then look a case called Hoffman v. Red Owl Stores, 133 N.W.2d 267 (Wis. 1965) and its progeny. It talks about a doctrine called "promissory estoppel." If you changed your legal position based on their promises, you may be able to sue them for the renewal. But, it sounds like a long shot. It sounds like they made no promises. If none of the above work, I would look for a new space to locate your newstand. Hugh C. Wood

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Answered on 3/13/02, 2:47 pm


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