The Supreme Court of California recently upheld the validity of the co-tenancy clause of a retail lease and its alternative rent structure in JJD-HOV Elk Grove, LLC v. Jo-Ann Stores, LLC, No.
CA Supreme Court Upholds Co-Tenancy Clause
The Supreme Court of California determined that the landlord held the requisite control under the associated lease agreement with the co-tenant because that co-tenant was located on property owned by that landlord. The court made a clear distinction between that scenario and the situation where a co-tenant is located on property owned by an unrelated third party.
By
Joseph P. Heins and Jocelyn C. Ng
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