Recent Court Decisions Discussing Lease Audit Issues
Case: SS Silberblatt, Inc. v. US Postal Service
(No. 98-16570, 2000 US App. Lexis 964 (9th Cir. January 21, 2000)
In this unpublished decision, the federal appeals court in
California ruled that the tenant was never in default of its lease even though the tenant
unilaterally offset rent to recover overpaid lease charges.
Under the lease, the tenant was required to pay its share of real estate taxes as
additional rent. The landlord received a refund on account of the real estate taxes, but
refused to credit the tenant for the refund. The tenant then offset rent in the amount of
its share of the refund. The landlord subsequently sued for nonpayment of rent. The court
ruled in favor of the tenant, holding that the refund served to reduce the additional rent
and therefore the tenant was never in default.
Case: Sheplers, Inc. v. Kabuto International
On August 6, 1999 a case was decided by the US District Court
of Kansas between a landlord (Kabuto) and tenant (Sheplers) over
common area maintenance charges. The tenant brought the action against
the landlord for declaratory judgment and an accounting under the
lease between the parties. The parties' dispute concerned whether
certain costs were properly chargeable to tenant as common area
maintenance charges under the lease.
Hart v. Vermont Investment Limited Partnership,
667 A.2d 578 D.C.App. 1995
Case: Hellyer Communications, Inc. v. WRC
Properties, 888 F.Supp. 94 (S.D.IN 1995)
In this case, tenant sued landlord to recover rent which tenant
claimed to have overpaid under a 1984 lease which had been amended on
several occasions by reason of the actual rentable area of its leased
premises containing less space than the amount represented by
Case: MTS, Inc. v. 200 East 87th St.
Associates, 899 F.Supp. 1180 (S.D.N.Y. 1995)
Case: In Re Arrow Mill Dev. Corp. 185 B.R. 190 (Bkrtcy.D.N.J.
Case: In Re Institute Place Associates, 1995 WL 137308 (Bankr.N.D.Ill.
Case: Saks & Company v. Swiss Bank Corporation, 1995
WL 11044 (S.D.N.Y. 1995)
Case: P. V. Properties v. Rock Creek Village Associates
Limited Partnership, 77 Md. App. 77, 549 A.2d 403 (1988).