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Real Estate Law Update re: Co-Tenant Lawsuit Judgements

September 30, 2014 – REAL ESTATE LAW UPDATE

Judgment Against One Co-Tenant Bars Separate Lawsuit Against the Other Co-Tenants.

In the case of DKN Holdings LLC v. Faerber 225 Cal.App.4th 1115, a commercial landlord who owned a shopping center was sued by one of the co-tenants claiming that the landlord misrepresented certain issues regarding the shopping center and/or withheld material information concerning the leasehold premises. The landlord then cross-complained against the tenant who sued him as well as the other two co-tenants. However, before trial, the landlord dismissed the other two co-tenants from the lawsuit. At trial the landlord was awarded 2.8 million against the one co-tenant for breaching the lease.

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