Legal Question in Business Law in Maryland

Re: permanent fixtures and equipment in business

The law of fixtures walks hand in hand with waste. In no way may a tenant seek to cause waste upon the landlord's property by the removal of a "fixture". Additionally, a tenant must not commit ameliorative waste, that is alterations that increase the premise's value. This is a fundamental basis of analysis which is, in large part, may be grounded within the terms of the lease agreement. An aspect that may not seem so apparent is a clause requiring and expressly covenanting that the tenant shall maintain the property in "good condition". Good condition simply is not an "improved condition".

Generally, a tenant must not remove a fixture no matter that the tenant installed it. Key to this aspect are the terms "fixture" and "installed". A fixute is a "once moveable chattel" that, by viture of its annexation to reality it "objectively" shows the "intention" to "permanently" improve the reality.

All this being said, if removal causes "substantial damage" then there is objective evidence that the tenant intended to install a fixture despite tenant's subjective intent to the contrary. Thus, in the absence of an agreement to the contrary, tenant may remove a chattel that was installed unless substantial damage is caused by its removal.

Standard practices within the trade may also be used as evidence for the objective standard, this of course presumes no express agreement to the contrary.

It appears from your facts that all the property is yours with the posible exception of the modular walk in box. You should contact an attorney for assistance. By the way, we love steamed crabs and wish you the best with your new business location.

Re: permanent fixtures and equipment in business

In these situations, the general rule is that anything "attached" to the premises is considered to be a fixture and, under usual landlord-oriented lease language, becomes the landlord's property upon termination of the tenancy. However, if the item can be easily removed without damaging the premises, and was installed at the tenant's expense because of the unique nature of his business, I think you have a valid argument for taking the property with you when you leave. You would have to restore the areas that had been occupied by the boiler and walk-in box to their pre-installation condition. But the landlord shouldn't realize a "windfall" if he economically forces you out by increasing the rent.

Re: permanent fixtures and equipment in business

There are several things to consider. First, whether or not there was any prior agreement concerning the equipment (maybe in the lease, maybe elsewhere). Second, the "intent" of the tenant counts to some degree -- and to the extent that the equipment can be removed without damage to the premises and without damage to the equipment, it tends to show the tenant had no "intent" to leave it with the landlord. Third, the removal of the equipment probably should occur before the term of the lease ends. Fourth, the tenant must repair any and all damages caused by the removal. Finally, the nature of the equipment counts. Things that are small, not attached in any way, moveable, etc. are much less likely to be considered a permanent fixture.

It is hard to know the answer with any certainty based only on your brief description, but it sounds as you might need an attorney to protect your interests.