Principal Attorney
Commercial leases are often the backbone of a business’s physical presence. When one party breaches the lease—whether it’s a tenant failing to pay rent or a landlord neglecting their obligations—the consequences can be serious. These disputes can escalate quickly, sometimes ending in litigation.
At Sul Lee Law Firm, we guide Texas businesses through every stage of commercial lease disputes. Understanding the litigation process can help you navigate a lease breach strategically and protect your legal and financial interests.
What Constitutes a Breach of a Commercial Lease?
A commercial lease is a legally binding agreement between a landlord and a tenant. Both parties are expected to fulfill their contractual obligations. A breach occurs when one party fails to meet these responsibilities. Common examples include:
- Nonpayment of rent
- Failure to maintain the premises
- Early termination without cause
- Illegal use of the space
- Breach of exclusive use clauses
- Failure to make necessary repairs
Whether you’re a landlord or a tenant, it’s critical to determine whether the breach is material (severe enough to justify legal action) and whether the lease provides a remedy or notice requirement before litigation can begin.
Step 1: Review the Lease Agreement
The first step before pursuing litigation is to review the lease contract thoroughly. Most commercial leases contain clauses about dispute resolution, default remedies, notice requirements, and each party’s rights and responsibilities.
At this stage, having an experienced attorney examine the lease can be crucial. A clear understanding of the agreement will inform the next steps—whether that’s sending a demand letter, negotiating a resolution, or initiating a lawsuit.
Step 2: Provide Written Notice of Breach
In many cases, the lease requires that the non-breaching party provide written notice of the breach to the other party. This notice typically outlines:
- The nature of the breach
- A deadline to cure the issue (if applicable)
- Consequences if the breach is not resolved
For tenants, this might mean a landlord must be notified of a repair issue before you can withhold rent. For landlords, it may mean providing tenants time to cure a late payment before eviction proceedings.
Failing to follow proper notice procedures can hurt your position in court, so this step is vital.
Step 3: Attempt Negotiation or Mediation
Commercial lease litigation can be costly and time-consuming. Often, it’s in both parties’ interest to attempt negotiation or alternative dispute resolution first. These discussions can result in:
- Payment plans or settlements
- Lease amendments
- Mutual termination agreements
If your lease includes a mediation or arbitration clause, you may be required to pursue those options before filing a lawsuit.
At Sul Lee Law Firm, we explore all avenues of resolution to protect your business while minimizing disruption and expense.
Step 4: Filing a Lawsuit
If informal resolution fails, litigation may be necessary. The process begins with filing a complaint in a Texas court, outlining:
- The existence and terms of the lease
- How the other party breached the agreement
- The damages you’ve suffered
- The legal relief you’re requesting
Once the lawsuit is filed, the defendant is served and has an opportunity to respond. The litigation proceeds through several stages.
Step 5: Discovery Phase
The discovery process is where both parties gather evidence to support their claims. This can include:
- Lease documents and correspondence
- Financial records and rent ledgers
- Inspection reports or maintenance logs
- Depositions of parties and witnesses
Discovery is often the longest phase of litigation, and it plays a crucial role in shaping your case strategy. Strong evidence can sometimes lead to a settlement before trial.
Step 6: Pre-Trial Motions and Settlement Talks
Before trial, parties may file motions to dismiss the case or limit what evidence is admissible. These pre-trial motions can significantly affect the outcome or even lead to a summary judgment in your favor.
Many commercial lease disputes are resolved at this stage, either through direct negotiation or court-ordered mediation.
Step 7: Trial
If the case proceeds to trial, both sides present their arguments, evidence, and witness testimony before a judge (and sometimes a jury). The court will decide:
- Whether a breach occurred
- Who was at fault
- What damages or remedies are appropriate
Possible remedies in commercial lease cases include unpaid rent, repair costs, possession of the property, or even eviction and attorney’s fees (if the lease allows it).
Step 8: Post-Judgment Enforcement
Winning a judgment doesn’t always mean immediate resolution. The losing party may refuse to comply, requiring additional steps to enforce the judgment, such as:
- Garnishing bank accounts
- Placing liens on property
- Requesting court orders for eviction
Sul Lee Law Firm supports clients through enforcement, ensuring judgments are collected and rights are upheld.
Why You Need Legal Counsel
Whether you’re a commercial landlord protecting your property or a tenant fighting for your rights, commercial lease litigation is complex. With high financial stakes and nuanced legal procedures, it’s critical to work with a team that understands Texas real estate and business law.
At Sul Lee Law Firm, we represent clients across Texas in commercial lease disputes, from initial breach to final resolution. We offer strategic, business-focused solutions designed to protect your interests at every step. Contact us today for a confidential consultation.