Breach of commercial Tenant Leases – Breach of Implied Covenant of Good Faith & Fair Dealing. Do we have basis for Class Action?

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Breach of commercial Tenant Leases – Breach of Implied Covenant of Good Faith & Fair Dealing. Do we have basis for Class Action?

Leases are specific: “RETAIL RENTAL AND NO OTHER PURPOSE”. Landlord/Manager applied to City Planning Review Board to waive intended use to change to office spaces . Tenants renewed leases based on intended retail use. If waiver is granted it will restrict (restraint of trade?) retail traffic into our business. Intent of leasing broker is to break old tenant leases, charge more rent under new leases & CAM fees for which no common area maintenance is being performed. Health Dept. has sited several times for violations; Building & Safety codes still being violated. Class Action possible?

Asked on June 6, 2009 under Real Estate Law, California

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Class action requires a certain number of plaintiffs with similar injuries, etc. under California law.  I don't know if this is it for you.  In terms of City Planning Review -- I think it may also be a zoning issue - and if he is granted it, then by law he can have whatever use he wants.  In terms of restraint of trade? No, he isn't restraining your trade but doing what he has a legal right to do -- he is the landlord , you  are the lessee.  If he tries to breach your lease, that is a different issue, indeed. 

 

If there are multiple issues you are experiencing, then you need to contact your State Attorney General's Office and Department of Health and see what can be done.


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