ALI-ABA Course of Study Modern Real Estate Transactions July 25 ...

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(Ala. Civ. App. 1995); Julian v. Christopher, 320 Md. 1, 575 A.2d 735
(1990); Hendrickson v. Freericks, 620 P.2d 205 (Alaska 1980); Campbell
v. Westdahl, 148 Ariz. 432, 715 P.2d 288 (Ct. App. 1985); Warmack v.
Merchants Nat'l Bank of Fort Smith, 272 Ark. 166, 612 S.W.2d 733
(1981); Kendall v. Ernest Pestana, Inc., 40 Cal. 3d 488, 709 P.2d 837, 220
Cal. Rptr. 818 (1985); Ilkhchooyi v. Best, 37 Cal. App. 4th 395, 45 Cal.
Rptr. 2d 766 (1995); Warner v. Konover, 210 Conn. 150, 553 A.2d 1138
(1989); Fernandez v. Vazquez, 397 So. 2d 1171 (Fla. Dist. Ct. App. 1981);
First Nationwide Bank v. Florida Software Serv., 770 F. Supp. 1537 (M.D.
Fla. 1991); Funk v. Funk, 102 Idaho 521, 633 P.2d 586 (1981); First Fed.
Sav. Bank of Ind. v. Key Mkts., Inc., 532 N.E.2d 18 (Ind. Ct. App. 1988);
Newman v. Hinky Dinky Omaha-Lincoln, Inc., 229 Neb. 382, 427 N.W.2d
50 (1988); Boss Barbara, Inc. v. Newbill, 97 N.M. 239, 638 P.2d 1084
(1982); Castle v. McKnight, 116 N.M. 595, 866 P.2d 323 (1993);
Economy Rentals, Inc. v. Am. Toyota, Inc., 112 N.M. 748, 819 P.2d 1306
(1991); see also Basnett v. Vista Vill. Mobile Home Park, 699 P.2d 1343
(Colo. Ct. App. 1984), rev'd, 731 P.2d 700 (Colo. 1987); Sterns Gallery
of Gifts, Inc. v. Corporate Prop. Investors, Inc., 176 Ga. App. 586, 337
S.E.2d 29 (1985); Citizens Bank & Trust Co. v. Barlow Corp., 295 Md.
472, 456 A.2d 1283 (1983); Healthco, Inc. v. E & S Realty Assocs., 400
Mass. 700, 511 N.E.2d 579 (1987); Jonas v. Prutaub Joint Venture, 237
N.J. Super. 137, 567 A.2d 230 (Ct. App. 1989). For a thorough analysis,
see also Coskan, Assignment and Sublease Restrictions: The Tribulations
of Leasehold Transfers, 22 LOY. L.A. L. REV. 405 (1989).
3. Consent of Lessor Not Unreasonably Withheld. Construction and effect
of provision in lease that consent to subletting or assignment will not be
arbitrarily or unreasonably withheld. 54 A.L.R. 3d 679 (1973 & Supp.
2002); 1 MILTON R. FRIEDMAN, FRIEDMAN ON LEASES § 7.304c (4th ed.
1997 & Supp. 2002); Annotation, 21 A.L.R. 4th 188, 198 et seq. (1983 &
Supp. 2002).
4. Relevant Factors for Subparagraphs (2) and (3) above. 2
2 Numerous cases cite the Restatement (Second) as authority for what is reasonable. The
Restatement, in turn, cites American Book Co. v. Yeshiva University Development Foundation,
Inc., 59 Misc. 2d 31, 33, 297 N.Y.S.2d 156, 169 (Sup. Ct. 1969), for several criteria a landlord
may apply to a prospective tenant, including: (i) financial responsibility (probably the single
most recognized criterion); (ii) the 'identity' or 'business character' of the transferee, i.e., the
transferee's suitability for the particular building; (iii) the legality of contemplated transferee’s
proposed use of the premises; and (iv) the nature of the occupancy (i.e., office, factory, clinic). A
Florida court adopted these factors in Fernandez v. Vazquez, 397 So. 2d 1171 (Fla. Dist. Ct. App.
1981), along with the need for alteration of the premises. Friedman cites several additional
factors, including avoidance of subjecting existing tenants to competition, protection of the
landlord's "tenant mix", reduction in rental value or increased fire hazard. FRIEDMAN supra, at §
7.304c (1983). Factors that a landlord may not reasonably consider include race, doctrinal
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