Commercial property owners and business tenants in Missouri sign commercial leases to govern their relationships and establish each party’s respective rights and obligations. Disagreements about or violations of these terms can lead to commercial lease disputes. Here’s what you can expect if you find yourself in one of these entanglements, and why it’s so important to have experienced legal guidance as you seek a positive resolution.
Common Causes of Commercial Lease Disputes in Missouri?
Some of the most frequent reasons for commercial lease disputes in Missouri include:
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Non-payment or underpayment of rent
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Disputes over common area maintenance charges
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Issues with the property’s conditions, such as malfunctioning electrical or plumbing services
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Conflicts caused by permitted use clauses or exclusivity rights
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Local zoning and land use issues
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Early terminations by tenants
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Holdover tenancies
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Disagreements over the effectiveness of purported lease renewals
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Misinterpretations of ambiguous lease terms
Initial Steps: Reviewing the Lease and Attempting Resolution
Who find themselves in a commercial real estate dispute can start by reviewing the terms of their lease agreement. Should a dispute escalate to litigation, a court will first look to the lease to determine each party’s rights or responsibilities. Reviewing the lease may help parties identify disagreements over the interpretation of lease terms that may signal a more fundamental dispute.
Next, the disputants may be able to salvage the relationship informally by:
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Documenting the issue
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Exchanging written notices, including those required by the lease
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Engaging in good-faith negotiations to reach a mutually agreeable resolution
When handled promptly and in good faith, many parties can resolve a commercial lease dispute without resorting to litigation.
Alternative Dispute Resolution (ADR) Options
Commercial lease agreements frequently include alternative dispute resolution provisions that require parties to submit lease disputes to ADR proceedings such as mediation or arbitration. In mediation, parties engage in settlement negotiations with the assistance of a neutral third party, the mediator, who facilitates their discussions. In arbitration, parties submit their dispute to a neutral third-party arbitrator, who reviews their evidence and testimony to issue a binding decision.
ADR can provide a quicker and confidential resolution to a commercial lease dispute compared to traditional litigation. However, mediation and arbitration can also have drawbacks, such as the ability for a party to walk away from the negotiating table during mediation or the limited appellate rights after an unfavorable arbitration decision.
Litigation in Missouri Courts
Sometimes, parties must resort to litigation in commercial lease disputes, especially when a seeks to evict a commercial tenant and regain possession of the property due to a material breach. Lawsuits involving commercial leases may assert claims such as:
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Breach of lease, such as non-payment by a tenant or a failure to fulfill maintenance and repair obligations
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Unlawful detainer or eviction actions
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Claims for other compensation, such as payment of contractually promised tenant allowances or reimbursement for property damage caused by a commercial tenant
Court litigation frequently involves a longer, more complex process. Although certain cases, such as evictions, may proceed on a faster timeline, parties typically undertake discovery and pretrial litigation before a case reaches a trial or hearing on the merits.
Contact a St. Louis Commercial Real Estate Attorney Today
Have you found yourself in a commercial real estate dispute in the St. Louis area? If so, contact Uthoff, Graeber, Bobinette & Blanke today for a confidential consultation with a commercial real estate lawyer to learn more about your next steps. We’re proud to serve both Missouri and Illinois clients from our offices in St. Louis and Clayton, and we look forward to meeting you and learning more about your issue.