Legal Question in Business Law in Massachusetts

Landlord breaks comercial lease

I have entered into a 4 year lease agreement with landlord for a function (wedding) facility. The lease was preceeded by a consulting agreement for one year during which time there would be a ''transition'' from current ownership to my company. The addition of this facility provided synergy to the other three like properties I own and or lease within 2 miles of new facility. During the consulting year I made deposits of $25,000 and had hard costs of another $60,000. I conservatively estimate $400,000 in profits over term. There is a signed lease between the parties. In November, landlord handed me a letter stating that due to my reputation in the area, his B.O.D. voted not to go forward with the lease. I had asked for a few minor changes in origional lease which they made and forwarded to me. I returned signed. They claim they never received set of second leases. Their position is that since the second was written but never signed, there is no lease. Doesn't the first become a valid instrument and can I recover my investment and potential losses?


Asked on 2/21/01, 2:01 pm

2 Answers from Attorneys
Lawrence Graves Coolidge & Graves PLLC

Re: Landlord breaks comercial lease

They've got it backwards -- if the first lease was fully executed (and you have a copy for proof), you can demonstrate that a lease exists. They can choose between arguing that the second set constituted an amendment that is not effective because it was never signed, or they can try to enforce the amendment, but arguing that an unexecuted amendment constitutes a nullification of the original agreement is a loser.

FYI, your message was only posted for replies today, 4/4/01.

Best wishes,

LDWG

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Answered on 4/04/01, 8:52 am
Charles Cobb Charles Cobb, Attorney At Law

Re: Landlord breaks comercial lease

Hi, You have a signed four year lease and they sent you a letter saying they are not going to "go forward with the lease"? If you improved their property they have been unjustly enriched. Lost expected profits are notoriously hard to recover since expectations are so elastic.

This may be something that can be resolved simply. Offer to mediate - you'll know after that if you are going to have to sue them. The lawsuit route will be expensive.

I can't say what they might be in a format like this but you should be advised there are time deadlines with all kinds of legal matters and you should check into that without delay.

Charles W. Cobb

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Answered on 4/04/01, 9:01 am


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