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I have an commercial real estate lease question, il, no, no…

Customer Question
I have an commercial...

I have an commercial real estate lease question

Lawyer's Assistant: Because real estate law varies from place to place, can you tell me what state this is in?

Il

Lawyer's Assistant: Has any paperwork been filed?

No

Submitted: 11 months ago.Category: Legal
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Customer reply replied 11 months ago
I lease a commercial space for a business. Lease does not have a termination clause so I can only sublet. I found a suitable business to sublet and submitted the signed lease and credit check for review. My new landlord contacted my current property management company and they disclosed partially false information to the new potential landlord. The property management company disclosed that the sublease hadn't been approved yet, which caused the current landlord to pull out of the new lease. Because of that disclosure I now have no place to do business because I have already sublet my current space.The lease reads "Landlord and tenant shall use commercially reasonable efforts to keep the terms of this lease confidential except to the extent disclosure is reasonably necessary in the conduct of each parties business or it is otherwise required by law.I would like to seek damages against the property management company, as well as, the individual property manager for 3 months of loss revenue while I look for another place.Is this possible?Extra Info :4 more years on lease sublet is for 1 year.
Customer reply replied 11 months ago
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Customer reply replied 11 months ago
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Lawyer: socrateaser, Lawyer replied 11 months ago
socrateaser
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Hello,

The fact that the contract requires confidentiality is not particularly important to your complaint. The false information is what has caused damage to your legal interests. Your cause of action in civil court is for negligent misrepresentation: (1) negligent (2) false statement of fact, (3) intended to induce (4) justifiable and (5) detrimental reliance and (6) causing damages. Your claim satisfies all the required elements of the charge. The property management made a false statement of fact which was made with a lack of ordinary care; it was intended to induce justifiable reliance upon the new property manager; the property manager relied on the false statement to your detriment, and it caused you damages.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, Justanswer retains your entire payment, and I receive nothing for my efforts in your behalf. Note: If you cannot find the rating button on your webpage, please just type in your rating in a response to this note, and customer service will apply the rating for you.

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Customer reply replied 11 months ago
Would I bring a claim against the individual or the property management company?
Lawyer: socrateaser, Lawyer replied 11 months ago

Management company and the individual. An employee of the management company is entitled to indemnity under the doctrine of "respondeat superior" (Latin: "let the master respond"). But, if the person turns out to be an independent contractor, then you want to make certain that you have named all possible defendants to the case.

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Lawyer: socrateaser, Lawyer replied 11 months ago

Note: You could also claim defamation of character -- trade libel. I would claim both in the lawsuit.

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Customer reply replied 11 months ago
How do I prove she did this? What evidence will I need? Is she allowed to disclose things to the future landlord? How much can I seek in damages?
Lawyer: socrateaser, Lawyer replied 11 months ago

I just researched Illinois case law on third party misrepresentations. The trade libel claim is the better option: (1) Reputation-injuring statement of fact (2) published to a third party and (3) causing damages.

You need evidence of the statement. If the new prospective manager is willing to testify that the old manager made a factual statement, and you can prove with other evidence that the statement was false when made, then you've proved your case, because your damagaes are presumed, as you are a private person, and the issue is not one of public concern.

You can seek any amount of damages, but generally, you would ask for any lost profits, value of rent owed to old manager, plus punitive damages for the intentional wrongful injury (punitives are typically three times actual).

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, Justanswer retains your entire payment, and I receive nothing for my efforts in your behalf. Note: If you cannot find the rating button on your webpage, please just type in your rating in a response to this note, and customer service will apply the rating for you.

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Lawyer: socrateaser, Lawyer replied 11 months ago

Hello again,

I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?

If you need further clarification, concerning this matter, please feel free to ask. If not, I would greatly appreciate a positive feedback rating for my answer (click 3, 4 or 5 stars) – otherwise, Justanswer retains your entire payment, and I receive nothing for my efforts in your behalf. Note: If you cannot find the rating button on your webpage, please just type in your rating in a response to this note, and customer service will apply the rating for you.

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