Monday, December 20, 2010

Court Reviews Whether A Commercial Landlord Misrepresented the Estimated Operating Expenses to the Tenant-Plaintiff

SOLES4SOULS, INC. v. DONELSON CEDARSTONE ASSOCIATES, LP ET AL. (Tenn. Ct. App. December 20, 2010).

In a landlord-tenant dispute, the tenant plaintiff claims that before the parties entered into a lease for commercial property, the landlord defendants misrepresented estimated operating expenses that the plaintiff was expected to pay as part of its rent pursuant to the lease terms.

The plaintiff appeals the trial court's dismissal of its claims for fraud and violation of the Tennessee Consumer Protection Act. We find that the defendants misrepresented estimated operating expenses after entering into the initial lease with the plaintiff but before entering into an agreement for expansion space.

We therefore reverse the judgment of the trial court on the plaintiff's claims for fraud and violation of the TCPA and remand for determination of an appropriate remedy for damage the plaintiff suffered after agreeing to lease the expansion space.

Opinion available at:
http://www.tba2.org/tba_files/TCA/2010/soles4souls_122010.pdf