Legal Question in Business Law in Hawaii

More detail on Lease not delivered...

I started a new business in April '01. I found a retail location and contacted the property management. This location was a sub-let from a major pizza delivery restaurant. When I met the insurance requirements and paid the deposit to get in, the property management gave me a receipt, stating that the Pizza place would be preparing the lease and that I have a valid lease status?!? With this receipt, I assumed all was in good faith, and I poured a bunch of money into the place getting it ready for the grand opening. However, I still hadn't received the lease. As time went on, and I cut monthly rent checks, attaching questions about the lease and my personal contact info. No response. I called the property management; they said, �You have to deal with the Pizza place�. I stopped paying rent with 4 months to go because that was the amount of the security deposit.

Here I am with 10 days left before the Pizza place no longer leases my space, back in the hands of the owners and property management. The owners are not going to give me a lease because the Pizza place says I haven�t paid rent for four months. The owners are jacking up the rent 25% and demanding a hefty deposit.

What are my rights?


Asked on 12/21/01, 12:31 pm

1 Answer from Attorneys

Jon Zahaby Tour bus, scenic and sightseeing, operation

Re: More detail on Lease not delivered...

It seems as though there is some fraud in the inducement of your lease and problems with the property management and the pizza restaurant's responsibilities to you. We are not even sure whether or not the pizza place had the consent of the owners to sublet the property. However, in black and white you have no 1 year lease and no option to renew irregardless of the receipt and "valid lease status" -- Even if a lease did exist I do not see that you negotiated for an option to renew the lease beyond the year -- OR whether your tenancy is more that month to month -- alot depends on whether the pizza place sublet to you their entire leasehold interest or reserved some for themselves -- also if your lease if for more than a year it must be in writing. You only have 10 days left and you installed fixtures and improvements in reliance on a lease with option to renew forthcoming - Additionally, you have probably established substantial goodwill with customers in your area and would loose the cash value of that goodwill if forced to move -- Note: I would say right now you have a month to month tenancy for a term less than one year because if a lease is invalid because it is not in writing and the tenant nonetheless goes into possession, the tenant's periodic payment of rent will convert what would otherwise be a tenancy at will into a periodic tenancy. The period of the tenancy coincides with the period for which rent is paid. If a tenant fails to pay the promised rent, the landlord has the right to terminate the periodic tenancy lease. Go seek the assistance of a law firm so they can see if the problems in your verbal negotiations with sublessor and the management company can keep you in possession before you become a hold over tenant.

Read more
Answered on 12/21/01, 2:27 pm


Related Questions & Answers

More Business Law questions and answers in Hawaii