Landmark Ruling on Cotenancy Provisions: What California’s Retail Landlords and Tenants Need to Know
The California Supreme Court’s recent ruling in JJD-HOV Elk Grove v. Jo-Ann Stores reaffirms the enforceability of cotenancy clauses in retail leases—provided they are structured as alternative performance terms rather than penalties. This decision has significant implications for landlords and tenants, shaping how lease agreements are negotiated and enforced. In this blog, we break down the case, its key takeaways, and actionable steps to help you safeguard your interests in commercial lease agreements. Whether you’re a property owner or a tenant, understanding this ruling can help you optimize your lease strategy.