Do I have grounds to get out of a lease, if the landlord violated his own non-competition rule and let a competing business in the same building?

UPDATED: Sep 8, 2011

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Do I have grounds to get out of a lease, if the landlord violated his own non-competition rule and let a competing business in the same building?

I was told when I rented a space for my salon, that we could not compete with the nail salon across the courtyard from us. Then the landlord let in a tenant who does facials, waxing, and makeup, which we also do. Business is slow and I feel like he has hindered the success of my business by allowing a competing business into our building. Do I have grounds to get out of my 5 year lease?

Asked on September 8, 2011 under Real Estate Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You need to carefully read your commercial real estate lease (assuming you have one) in that its terms control the obligations owed you by the landlord and vice versa in the absemce of conflicting state law. If your written lease contains a provision that you have exclusive use in the complex to do facials, waxing and makeup, then you are entitled to have no competitors with your business in your complex that is rented out by the same landlord.

If your written lease does not have such a provision precluding competitors in the complex that you are leasing, you need to speak with your landlord about leasing to some business that does virtually the same type of services that you do which competes directly with your business and the possibility of you ending your lease as a result of what the landlord did in renting to a competing business.

If you do not get any satisfactory results, you should consult with a landlord tenant attorney to review the options you have under your written lease.

Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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