Lease Audit Information

TOPIC OF THE WEEK:

Developers Diversified Realty v. Coventry Real Estate Fund II, LLC, 2012-Ohio-1056

The interesting part of this case is that it exposed the contractual relationship between the Landlord (DDR) and it's largest vendor and maintenance services company, Oxford Building Services.

"Coventry II argued that DDR fraudulently concealed its relationship with Oxford Building Services (“Oxford”). Oxford is a vendor DDR uses to help manage all of its properties, not just the properties it owns with Coventry II. Oxford in turn uses a nationwide computer system and DDR’s buying power due to its ownership of over 700 properties to bid the contracts out to individual vendors for the most cost effective price. Oxford charges the vendors a 3 percent surcharge fee of which DDR receives 75 percent.” Click here for case.

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