[RPPTL LandTen] Assignment, Subletting and Exclusive Use Provision Question

[George Pincus]

Here are my facts:


*        Landlord enters into a lease with Tenant #1.  The Assignment/Subletting clause says the typical "which consent shall not be unreasonably withheld" when the Landlord is asked by the Tenant to approve an assignment or sublease.  There are no criteria or conditions specified as to what qualifies as Landlord being reasonable when it says "no" to a proposed assignment or sublease.



*        Three (3) years later and Landlord is now negotiating a lease with Tenant #2, who is asking that Landlord not lease other space in the building to Tenant #2's competitors, which will be listed on a schedule to the Lease.



*        Question:  is it reasonable for Landlord to say "no" to Tenant #1 when Tenant #1 shows up with a request to sublet to one of Tenant #2's competitors on the list?


Obviously, the definitive answer is to go back to Tenant #1 and try and amend Tenant #1's Lease to preemptively provide that it is not unreasonable for Landlord to withhold consent to a proposed assignment or sublease to one of the listed competitors, but that is not going to happen.

I can't find any case law on this point (but at my advanced age, I suck at research).   Does anyone have any relevant experience with this issue?

I appreciate your thoughts on this issue.

Thanks very much.


George A. Pincus, Esq.
Shareholder
Stearns Weaver Miller Weissler
  Alhadeff & Sitterson, P.A.
New River Center, Suite 2100
200 East Las Olas Boulevard
Ft. Lauderdale, FL 33301
Telephone: 954-766-9705
Facsimile:    954-766-9719
E-mail: gpincus at stearnsweaver.com<mailto:gpincus at swmwas.com>
www.stearnsweaver.com



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