Jjd-Hov Elk Grove, LLC v. Jo-Ann Stores, LLC

Summary

The court held that the lease’s cotenancy provision created a valid alternative rent structure rather than an unenforceable liquidated-damages penalty. Because the landlord had a realistic and rational choice between maintaining occupancy and accepting reduced rent, the statutory limits on penalties and forfeitures did not apply, and the provision was enforceable as written. The court therefore affirmed the Court of Appeal; no separate opinions were issued.