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The Leasing Hotline

By ALM Staff | Law Journal Newsletters |
June 01, 2004

INDEMNIFICATION BY CO-TENANT

A tenant may maintain an action against a co-tenant for contribution, indemnification, and breach of contract; there is no duty for a co-tenant to mitigate damages. Roberts d/b/a/ Auto Color Concepts v. Meyers Enterprises d/b/a Modern Dent Repair, No. 4-117/03-1001, Court of Appeals of Iowa, March 10, 2004.

Meyers and Roberts each maintained their own businesses (Modern Dent Repair and Auto Color Concepts, respectively) but held themselves out collectively as Automotive Appearance Group and entered into a commercial lease with Clark Properties commencing June 1, 1999. The tenant on the lease was Auto Color Concepts/Modern Dent Repair, and both Meyers and Roberts signed the lease. They each agreed to pay half of the monthly rent. Thereafter, on March 1, 2000, Meyers vacated the premises and failed to pay his share of the monthly rent. Roberts continued to operate his business on the premises and continued to pay his half of the rent. Clark Properties then sued Meyers and Roberts for breach of contract and sought past due rent.

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