South Florida Landlord-Tenant Disputes: Common Issues and Potential Outcomes

Commercial landlord-tenant disputes can involve a variety of issues. When facing these disputes, it is critical for both parties to have a clear understanding of all potential claims, counterclaims, and defenses. This is the only way to make informed decisions, making it essential for both parties to engage an experienced Miami civil litigation attorney who can help them pursue a favorable resolution.

Common Issues in Commercial Landlord-Tenant Disputes

For both parties, identifying all potential claims and counterclaims is a key first step toward building a strong and cohesive litigation strategy. While every landlord-tenant dispute has unique aspects, most involve one or more of the same underlying contractual issues. This includes common issues such as:

• Rent Disputes – Rent disputes are easily among the most common types of disputes between commercial landlords and tenants. While these disputes can involve a tenant’s nonpayment of rent, they can also involve issues related to the calculation of rent, when the tenant’s obligation to pay rent begins, and whether (and to what extent) the tenant is entitled to any rent abatements.
• Common Area Maintenance (CAM) Charge Disputes – Disputes involving the tenant’s obligation to pay common area maintenance (CAM) charges are common as well. Here too, while nonpayment can provide clear grounds for a commercial landlord to pursue enforcement, disputes can also involve issues related to the timing and calculation of CAM charges.
• Disputes Involving Buildouts and Improvements – Disputes involving buildouts and improvements can also involve issues related to the timing and calculation of rent and CAM charges. But, they can also involve issues related to liability for construction costs, approvals (or non-approvals), and a variety of other matters related to “white box” buildouts and improvements to previously built-out commercial spaces.
• Disputes Involving Maintenance and Repairs – These disputes can involve many of the same issues as disputes related to buildouts and improvements. If a commercial lease is unclear about which party is liable for a particular maintenance or repair cost, this can lead to a contentious dispute that requires the parties to either reach a settlement or pursue alternative dispute resolution (ADR) or trial.
• Disputes Involving Anchor Tenant Provisions – Anchor tenant provisions can be key to the viability of both anchor tenants and other businesses that rely on them to attract customers. If an anchor tenant is not clearly worded or does not clearly address a particular scenario, this can also lead to a contentious dispute that the parties may ultimately need to resolve through mediation, arbitration, or litigation.
• Disputes Involving Property Use Restrictions – Disputes can arise regarding anchor-tenant provisions and other scenarios. In all scenarios, if a use restriction prevents (or purportedly prevents) a tenant from engaging in essential business activities or selling certain products or services, this can lead to a contentious and high-stakes dispute as well.
• Lease Renewal Disputes – By their nature, lease renewal disputes are time-sensitive. If the parties cannot reach an agreement on the tenant’s right to renew, resolving the matter before the tenant’s lease expires can be essential to avoid additional costs and uncertainty. While lease renewal disputes can (and often do) last well beyond the term of a commercial lease, it will often be in both parties’ best interests to reach a prompt resolution.

Again, these are just examples of some of the most common issues in commercial landlord-tenant disputes in South Florida. Commercial lease disputes can (and often do) involve a wide range of other issues—and, as discussed above, comprehensively identifying all relevant grounds for pursuing legal action is key for both parties.

Potential Outcomes of Commercial Landlord-Tenant Disputes

Regardless of the issue (or issues) involved, all commercial landlord-tenant disputes have three main possible outcomes. Subject to the parties’ appeal rights following arbitration and litigation, the potential outcomes of these disputes are:

1. Negotiated Settlement

Even in highly contentious scenarios, commercial landlord-tenant disputes often end with negotiated settlements. The parties can either negotiate a settlement informally with their respective attorneys or reach a settlement through the mediation process.

Many commercial leases include mandatory ADR provisions, and many of these provisions call for mediation as a precursor to arbitration or litigation. While neither party is required to reach an agreement through the mediation process, it can be highly effective in many cases. This is particularly true when the parties share a common interest in either preserving their commercial relationship or moving on as efficiently as possible.

2. Decision in Binding Arbitration

When commercial landlords and tenants cannot reach an agreement, arbitration is often the next step. Commercial leases regularly require arbitration in lieu of litigation—often with limited exceptions for when immediate injunctive relief is warranted. The outcome of arbitration is binding on both parties, and while arbitration takes the final decision out of the parties’ hands, it is generally more efficient and more cost-effective than litigating in court.

3. Judgment in Court

In some cases, litigation will be unavoidable. If arbitration isn’t required (and the parties aren’t willing to agree to arbitrate), then they may have no choice other than to seek a resolution in court. In civil litigation involving commercial lease disputes, each party may assert a variety of claims and defenses, and if they don’t settle during the litigation process (and neither party secures a pre-trial verdict), their dispute will be resolved via a final judgment at trial.

Request a Call with a Miami Civil Litigation Attorney at Gonzalez Law Offices, P.A.

Our attorneys handle commercial landlord-tenant disputes throughout South Florida. If your company is facing a dispute under a commercial lease, we invite you to contact us for more information. To request a call with a Miami civil litigation attorney at Gonzalez Law Offices, P.A., please call 305-676-6677 or contact us online today.