Commercial tenant refusing to pay management fees and provide complete financials as required under the lease.

Jun 16, 2017

OUTCOME: $1.25 million verdict, plus accruing management fees, costs, and attorneys' fees

Attorney Roney worked as co-counsel in representing the interests of a Milwaukee landlord in obtaining an award of $1.25 million for tortious interference with a real estate sale, plus approximately $8 ... 0,000 in unpaid management fees, plus approximately $150,000 in attorneys' fees, and a Writ of restitution. After a three day trial in January 2017, the Court found that the commercial tenant interfered with the landlord’s contracts to purchase the property. The landlord filed an eviction action against the tenant, and the tenant filed its own suit claiming it had a right to purchase the property based on an unsigned lease in its possession. Landlord then counter-sued for, inter alia, tortious interference with prospective economic advantage. The litigating tenant, an assignee of the lease through a prior tenant, decided to refuse to pay management fees even though the fees were clearly delineated in the lease. In addition, the tenant refused to provide its financials which were required under the lease. The failure to provide financials frustrated repeated attempts to sell the property. The tenant claimed it had a right to purchase the property based on an early draft of the lease which was never executed. After trial, the Milwaukee court granted judgment to the landlord on the eviction and awarded $1.25 million in damages on the tortious interference with economic advantage claim. The court found that the tenant knew that the financials were necessary and that it intentionally refused to provide the financials in order to frustrate the sale of the property. This case stands as a reminder to tenants that failing to comply with supplemental terms of a lease can have serious consequences beyond mere eviction. The case is currently pending appeal.