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

Tue Aug 3 08:45:35 PDT 2010

George:

I agree with David. Also, you are probably well familiar  with this, but
maybe it will  be useful (from
<https://web2.westlaw.com/find/default.wl?vc=0&ordoc=2011992142&rp=%2ffind%2
fdefault.wl&DB=735&SerialNum=1981119298&FindType=Y&ReferencePositionType=S&R
eferencePosition=1173&AP=&rs=WLW10.06&ifm=NotSet&fn=_top&sv=Split&mt=Florida
&utid=1&vr=2.0&pbc=81501C16> Fernandez v. Vazquez, 397 So.2d 1171, 1173-74
(Fla. 3d DCA 1981)). Underlines are mine: 

[3] <https://web2.westlaw.com/result/%09%09%09%09%09%09#F31981119298>
<https://web2.westlaw.com/KCNotes/default.wl?utid=1&fn=_top&mt=Florida&pbc=A
FFE46B4&vr=2.0&sv=Split&ifm=NotSet&locatestring=HD(003)%2cCL(H%2cO)%2cDC(A%2
cL%2cO%2cD%2cG)%2cDT(E%2cD%2cC%2cM)&rs=WLW10.06&service=Find&rlt=CLID_FQRLT2
12475391038&serialnum=1981119298&rp=%2fKCNotes%2fdefault.wl&n=1&rlti=1>
Headnote Citing References[4]
<https://web2.westlaw.com/result/%09%09%09%09%09%09#F41981119298>
<https://web2.westlaw.com/KCNotes/default.wl?utid=1&fn=_top&mt=Florida&pbc=A
FFE46B4&vr=2.0&sv=Split&ifm=NotSet&locatestring=HD(004)%2cCL(H%2cO)%2cDC(A%2
cL%2cO%2cD%2cG)%2cDT(E%2cD%2cC%2cM)&rs=WLW10.06&service=Find&rlt=CLID_FQRLT2
12475391038&serialnum=1981119298&rp=%2fKCNotes%2fdefault.wl&n=1&rlti=1>
Headnote Citing References[5]
<https://web2.westlaw.com/result/%09%09%09%09%09%09#F51981119298>
<https://web2.westlaw.com/KCNotes/default.wl?utid=1&fn=_top&mt=Florida&pbc=A
FFE46B4&vr=2.0&sv=Split&ifm=NotSet&locatestring=HD(005)%2cCL(H%2cO)%2cDC(A%2
cL%2cO%2cD%2cG)%2cDT(E%2cD%2cC%2cM)&rs=WLW10.06&service=Find&rlt=CLID_FQRLT2
12475391038&serialnum=1981119298&rp=%2fKCNotes%2fdefault.wl&n=1&rlti=1>
Headnote Citing References Accordingly, we hold that a lessor may not
arbitrarily refuse consent to an assignment of a commercial lease which
provides, even without limiting language, that a lessee shall not assign or
sublease the premises without the written consent of the lessor.[FN8]
<https://web2.westlaw.com/result/%09%09%09%09%09%09#B00881981119298>  A
withholding of consent to assign a lease, which fails the tests for good
faith and commercial reasonableness, constitutes a breach of the lease
agreement. Whether a landlord breached the lease by acting unreasonably in
withholding consent of a commercial tenant is to be determined by a jury
according to the facts of that case. The following factors are among those
which a jury may properly consider in applying the standards of good faith
and commercial reasonableness: (a) financial responsibility of the proposed
subtenant (b) the "identity" or "business character" of the subtenant, i.
e., suitability for the particular building, (c) the need for alteration of
the premises, (d) the legality of the proposed use, and (e) the nature of
the occupancy, i. e., office, factory, clinic, etc.; See Popovic v. Florida
Mechanical Contractors, supra, Whitman v. Pet Inc., supra, American Book Co.
v. Yeshiva University, Development Foundation,
<https://web2.westlaw.com/find/default.wl?tf=-1&rs=WLW10.06&serialnum=196912
6399&fn=_top&sv=Split&tc=-1&findtype=Y&ordoc=1981119298&mt=Florida&db=602&ut
id=1&vr=2.0&rp=%2ffind%2fdefault.wl&pbc=AFFE46B4>  Inc., 59 Misc.2d 31, 297
N.Y.S.2d 156 (1969); Johnson v. Jaquith, supra. Denying consent solely on
the basis of personal taste, convenience or sensibility or in order that the
landlord may charge a higher rent than originally contracted for have been
held arbitrary reasons failing the tests of good faith and reasonableness
under commercial leases. Catalina Inc. v. Biscayne Northeast Corp., supra;
Chanslor Western Oil
<https://web2.westlaw.com/find/default.wl?tf=-1&rs=WLW10.06&serialnum=197012
4290&fn=_top&sv=Split&tc=-1&findtype=Y&ordoc=1981119298&mt=Florida&db=578&ut
id=1&vr=2.0&rp=%2ffind%2fdefault.wl&pbc=AFFE46B4> & Development Co. v.
Metropolitan Sanitary District, 131 Ill.App.2d 527, 266 N.E.2d 405 (1970),
citing Broad and Branford Place Corp. v. J. J. Hockenjos Co., 132 N.J.L.
<https://web2.westlaw.com/find/default.wl?tf=-1&rs=WLW10.06&referencepositio
ntype=S&serialnum=1944110374&fn=_top&sv=Split&referenceposition=82&findtype=
Y&tc=-1&ordoc=1981119298&mt=Florida&db=162&utid=1&vr=2.0&rp=%2ffind%2fdefaul
t.wl&pbc=AFFE46B4>  229, 39 A.2d 80, 82 (1944).

More recently cited in Speedway SuperAmerica, LLC
<https://web2.westlaw.com/find/default.wl?returnto=BusinessNameReturnTo&rs=W
LW10.06&ifm=NotSet&fn=_top&sv=Split&findtype=l&lvbp=T&docname=CIK(LE10368674
)&mt=Florida&db=BC-COMPANYSRBD&utid=1&vr=2.0&rp=%2ffind%2fdefault.wl&pbc=3F1
E7F52>  v. Tropic Enterprises, Inc
<https://web2.westlaw.com/find/default.wl?returnto=BusinessNameReturnTo&rs=W
LW10.06&ifm=NotSet&fn=_top&sv=Split&findtype=l&lvbp=T&docname=CIK(LE00064224
)&mt=Florida&db=BC-COMPANYSRBD&utid=1&vr=2.0&rp=%2ffind%2fdefault.wl&pbc=3F1
E7F52> . 966 So.2d 1  Fla.App. 2 Dist.,2007.

Jeffrey R. Mazor, Esq.

J. R. Mazor & Associates, P.A.

Presidential Circle Building 

4000 Hollywood Blvd.,  Suite 265-s

Hollywood, FL 33021

Phone: 954-962-3500

Fax:       954-962-3560

Email:   Jmazor at Mazor.com

From: landten-bounces at lists.flabarrpptl.org
[mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of George Pincus
Sent: Tuesday, August 03, 2010 10:42 AM
To: 'RPPTL Landlord Tenant Committee'
Subject: [RPPTL LandTen] Assignment, Subletting and Exclusive Use Provision
Question

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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