Legal Question in Landlord & Tenant Law in Michigan
A business with no sign
I am opening a business on a main street, and the lease states that the landlord grants permission to put up a sign. We are almost ready to open, and the huge sign above our space either needs to be moved or removed. The landlord refuses. The other sign has been there for many years, and the tenant and landlord won't remove it. We submitted a drawing of the sign many months ago and the landlord approved it. Now, he won't and we are a business without a sign. When reminded that they had approved the sign, the property manager said, ''well i didn't approve where it was going to go.'' The sign also has to be approved thru the historic commission and she refuses to sign the application. The sign above the store is also in violation of the city sign ordinance, but they will not intervene because it has been there so long. Where do we go from here?
2 Answers from Attorneys
Re: A business with no sign
This is a serious problem for you because you will not attract business without a sign. From what I can tell, the contract was ambiguous as to the details with regard to the sign. Ambiguities in contracts are construed in favor of the person who drafted the contract. Furthermore, the landlord's approval of the sign led you to rely upon this approval and move forward. Therefore, you have a great case to work with. You should write a certified letter that states that the landlord must meet your reasonable demands with regard to the sign or you will hire someone to take care of it and deduct the amount from the rent. (You must hold the rent in an escrow account.)
If you would like further information or assistance, please contact me via my website at www.lawrefs.com.
Re: A business with no sign
If your lease provides that you are permitted an exterior sign, which the landlord has to preapprove (which is the standard procedure), and then your landlord refuses to permit you put it up, he is in breach of the lease agreement. The lease should also provide who has to remove and/or pay for removal of the old sign or any other materials preventing your sign from being put up.
If you cannot resolve, I would suggest retaining a lawyer to review the terms of your lease agreement and send the landlord a letter explaining that he is in breach.
Not having a sign for a business, when it was promised in your lease, is a MATERIAL breach, as this will affect your business traffic. Because it is a material breach, you can, by law, escrow your rent by placing it in a bank account and notifying the landlord that the money is being held there, until he cures the breach, i.e., allowing the sign.
You could not withhold rent if you are waiting for the historic commmission to approve it. However, you need to take action immediately so you can get your sign up as soon as possible.
If you would like to have me review your lease agreement and draft a letter to the landlord, in the hopes of resolving without an escrow account and/or litigation, please contact me immediately to schedule an appointment.
Thank you.
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