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Commercial litigation results due to lease termination fees

Businesses often enter into contracts in order to lease commercial property to carry out their operations. When issues come about with the lease or with the landlord, those issues could end up having negative effects on the business. Most often, monetary damages result, and some situations could lead to commercial litigation in hopes of having the problems addressed.

Texas residents may be interested in a lawsuit currently underway in another state involving a bar and a project developer. Apparently, the bar had operated in the area where the project was taking place and was having to move locations due to demolition of their building during the development. However, the bar had a lease at its initial location that was supposed to have run through 2022. During the construction of the development, the bar owners were compensated by the developers for lost business and had found a new location to operate out of. 

The issue at hand revolves around the bar's new location and its inability to obtain a liquor license for the location. As a result, the owners are having to terminate their lease because they cannot run their bar as they desire. They want the developer to pay the termination fee, which is approximately $600,000. However, the development company has reportedly refused to pay the termination fees because it believes the bar owners have not actually attempted to obtain a liquor license. The bar owners are suing in hopes of obtaining the termination fees.

Running any type of business is a costly endeavor, and when certain business moves become complicated, it can also have major financial impacts on a company. If Texas business owners are having issues with commercial property, they may want to make sure that they understand their legal options. In some cases, commercial litigation may be necessary in order to work toward the best possible outcome.

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