Lease Audit Information
TOPIC OF THE WEEK:
Wilbur and Village Lane Limited v. Cinemark
Corporation, 2002 WL 10410083 (Tex. Ct.
App. Houston, May 23, 2002, n.w.h.)
In this unpublished decision, a jury found
that "management fees" are not proper CAM expenses even when
language exists allowing costs of "supervising and
administering" the common areas, "including fees paid to third
parties in connection with the same". Furthermore, the jury
found that the tenant was not in breach of the lease even
though they refused to pay the amount billed by the Landlord.
The jury found that the tenant's failure to comply with the
lease was excused by the landlord’s initial breach of the
lease by charging the improper management fee.