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Case Notes

By ssalkin

Tenant Improvement Does Not Shift Repair Responsibility Away from Landlord

A California appeals court has upheld the finding of a special master that the property owner must bear the costs of repairing a roof that had reached the end of its useful life even though there was some indication that a pool built by the tenant created additional stress to the roof and the terms of the parties' lease provided that damage to the premises caused by tenant improvements would be paid for by the tenant. Fitness Int'l v. Monterey Prop. Assocs. Anaheim, LLC, 2018 Cal. App. Unpub. LEXIS 5053 (7/25/18).

The defendant landlord, Monterey Property Associates Anaheim, LLC, was the successor in interest to a lease entered into in 2001 between the predecessor landlord and the LA Fitness gym operator. The lease required the tenant to make “any repairs necessitated by … improvements made by or on behalf of the Tenant.” One improvement, made during the pre-lease term buildout phase, was the installation of a pool for the use of the tenant fitness club's members.

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