Landlord Drops $100K Lawsuit Against CO Small Business Owner
Case Overview
Type of Case: Business Litigation
Legal Issue: Small business owner sued for over $100,000 by a former landlord alleging unpaid Public Improvement Fees (PIF) tied to a special metropolitan tax district.
Applicable Statutes: Colorado Special District Act, local municipal covenants
Outcome: Full dismissal with prejudice (zero dollar payout), completely eliminating six-figure exposure prior to trial and extensive discovery.
A small business owner sought help from our business litigation attorneys after their former landlord sued them for over $100,000. Our client had leased space in a shopping center that was in a special, quasi-municipal metropolitan tax district. The landlord alleged that the lease agreement required our client to pay a public improvement fee equal to two percent of their annual retail sales for as long as they leased the space.
By the time our client was sued, they had moved their business to a new location — and their former landlord, who was suing them, no longer oversaw the property in the shopping center. In fact, the retail space had a different landlord who had agreed to pay the public improvement fee. Our business litigation attorneys built the client’s defense around two points:
The fee did not apply to our client in the first place.
Even if a fee had once been properly owed, the landlord had failed to position themselves to collect it under Colorado law and the operative covenant.
Our attorneys walked opposing counsel through each point, showing them that their claim was weaker than the six-figure demand suggested.
As a result, the landlord dismissed the claim against our client with prejudice, meaning the lawsuit can never be refiled. Just as important, our client was spared from substantial discovery and pretrial work, putting this unwanted six-figure exposure behind them without ever going to trial.
Our business litigation attorneys help clients navigate public improvement fee demands. Call 303-688-0944 to schedule a consultation or book online 24/7.