Month: November 2014

In the News: Dallas Cowboys Stadium Sues Luxury Suite Renter

lease rent duty to mitigate dallas cowboys stadiumThe Dallas Morning News reported last week that the Dallas Cowboys Stadium is suing a resident of Washington D.C. who has leased a luxury suite but allegedly failed to pay for it.

The lease is for a 20-year term at a rough rate of $500,000/year. Yeah, that totals $10 million. According to the article, the renter paid for a few years but then stopped. In their petition, the Cowboys Stadium cites a provision of the lease that would appear to allow them, upon the renter’s default, to terminate the renter’s use and possession of the suite and declare the entire unpaid balance of the lease fee immediately due and payable.

That’s right. It’s the Cowboys Stadium’s position that they now get the luxury suite back as well as the rent they would have received from the renter had she continued to occupy the suite for the remainder of the 20-year term. Can they do that?

Maybe. As a general rule the Cowboys Stadium would probably have to mitigate their damages by looking for an alternative lessee and deducting/offsetting fair market value rent received from that lessee from the damages they seek in this lawsuit. However, without seeing the actual suite lease agreement, it’s impossible to say whether this “zone defense” would apply. And, frankly, I’d like to spend a few weekends in the suite in order to assess whether any subsequent lease the Cowboys Stadium may enter into for the space actually represents a fair market value.

So all of you Cowboys fans with disposable income of $500,000/year may be help someone out by renting a suite. Or maybe not. But, hey. How about them Cowboys?

In our In the News series, we use an article or topic that has been featured recently in the news as a potential learning opportunity.

Dallas Bar Foundation — Life Fellow

The Dallas Bar Foundation’s mission is to sponsor and encourage research, publications, institutes and forums for the furtherance of justice under the law; to establish scholarships and otherwise promote the study of law and research therein and the continuing education of lawyers; to institute and maintain legal aid facilities for the indigent; to preserve historical structures, display historical memorabilia and conduct historical observances; and to accept aid, donations and grants from government and private sources….

I’m proud to have been named a Life Fellow to this commendable organization.

More information on the DBF is available here.

dallas bar foundation life fellow professional

Receiverships in Three Sentences

texas real estate receivershipsBlack’s Law Dictionary defines a receivership as a remedy by which a court appoints a third party to take possession of property and to preserve its value under supervision of the court. The person who undertakes this endeavor — the receiver — is supposed to be neutral and disinterested in any dispute underlying the receivership. Texas law allows institution of receivership proceedings in many different situations.

In our Law 101 posts, we define terms, phrases, or concepts with the goal of conveying core information in order to set the stage for more complex discussions.

What is a Certificate of Occupancy?

According to the City of Dallas, a certificate of occupancy is a document issued by the Building Inspection department, which permits land and/or buildings to be used for the purpose(s) listed on the certificate. “Except for single family, handicapped group dwelling unit, and duplex uses, a person shall not use or occupy or change the use or occupancy of a building, a portion of a building, or land without obtaining a certificate of occupancy from the building official….”picture

In our Law 101 posts, we define terms, phrases, or concepts with the goal of conveying core information in order to set the stage for more complex discussions.