Commercial Landlords in Los Angeles who incorporate restrictions on a tenant’s ability to transfer or assign the commercial lease subject to the landlord’s consent wherein the standard that the landlord’s consent may not be unreasonably withheld, must be aware that a finding that consent was “unreasonably” withheld will give rise to the tenant’s right to bring an action against the landlord for contract damages or give the tenant the right to terminate the lease. See Cal. Civ. Code § 1995.310.
In addition to said contract damages for the unreasonable withholding of consent, a landlord may be faced with tort claims by a tenant such as tortious interference with prospective economic advantage or trespass. The reasonableness of withholding consent would necessarily be a question of fact for a fact finder to decide. Thus, commercial landlords are advised to objectively scrutinize their reasons for withholding consent on an assignment or sublease. If you are a commercial landlord and have a lease dispute, contact one of our Commercial Lease Attorneys in Los Angeles for a free consultation and case review.