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Liquidated Damages Commercial Leases

Davis Wright Tremaine LLP

Seattle Commercial Landlords Must Take Action To Comply With Commercial Guaranty Ordinance

Following years of bolstering residential tenant protections, Ordinance 126982 marks one of the City of Seattle's first major forays into policing the commercial landlord-tenant relationship. The ordinance, which went into...more

Pierce Atwood LLP

Massachusetts High Court Reaffirms "Single Look Doctrine” For Evaluating Liquidated Damages Clause in Commercial Leases

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Last week the Supreme Judicial Court of Massachusetts (SJC) held that, despite defaulting only one month into its five-year lease, a commercial tenant is bound by a liquidated damages clause requiring a lump-sum payment of...more

Goodwin

Commercial Leasing in Massachusetts: SJC Confirms Enforceability of Accelerated Rent as Liquidated Damages

Goodwin on

On September 25, 2023, the Massachusetts Supreme Judicial Court issued an important decision that affects commercial landlords’ ability to accelerate rent as liquidated damages after a Lessee’s default in Cummings Properties,...more

Partridge Snow & Hahn LLP

Massachusetts Appeals Court Strikes Down Commercial Landlord's Right to Collect Accelerated Rent Upon a Tenant Default

In the December 5, 2022 opinion (Cummings Properties, LLC v. Darryl C. Hines, No. 21-P-1153), the Massachusetts Appeals Court considered whether a commercial landlord can collect accelerated rent upon a tenant default,...more

Holland & Knight LLP

Accelerated Rent Clauses in Massachusetts Commercial Leases

Holland & Knight LLP on

Massachusetts' highest court, in its 2007 opinion in Cummings Properties, LLC v. National Communications Corp., 449 Mass. 490, 494 (2007), shocked commercial leasing lawyers by announcing that accelerated rent clauses (i.e.,...more

Goodwin

Commercial Leasing in Massachusetts: Commercial Landlord Cannot Collect Accelerated Rent as Liquidated Damages and Rent From New...

Goodwin on

On December 5, the Massachusetts Appeals Court issued an important decision impacting commercial landlords’ ability to accelerate rent as liquidated damages after a Lessee’s default in Cummings Properties, LLC vs. Darryl C....more

DarrowEverett LLP

Precedent and Precision Continue to Drive Massachusetts Court Decisions in Litigation Involving Commercial Leases

DarrowEverett LLP on

Nearly a decade ago, I wrote an article for the New England Real Estate Journal about a decision issued by the Massachusetts Supreme Judicial Court that provided an important reminder to commercial leasing practitioners on...more

Bowditch & Dewey

Liquidated Damages Clause in Commercial Lease Unenforceable

Bowditch & Dewey on

In its December 5, 2022 slip opinion for Cummings Properties, LLC v. Darryl C. Hines, No. 21-P-1153, the Massachusetts Appeals Court held that a provision of a commercial lease that accelerated all remaining rent as...more

Lasher Holzapfel Sperry & Ebberson PLLC

Breaking a Commercial Lease: Things to Consider Before Termination

The world is transforming in the post-covid era and business needs are evolving as consumer habits change. These changes can directly impact the space where you conduct business and have you contemplating what to do about...more

Patton Sullivan Brodehl LLP

Enforceability of Commercial Lease Co-Tenancy Provisions

A commercial lease co-tenancy clause conditions a retail tenant’s opening for business or continuing operations at the designated property upon another tenant opening for business or continuing operations at the same...more

Pillsbury Winthrop Shaw Pittman LLP

California Commercial Tenant Security Deposits in a COVID-19 World

In the wake of government-ordered moratoriums on commercial tenant evictions, how does a California commercial tenant’s security deposit come into play as an available landlord remedy for a lease default? Commercial lease...more

Goulston & Storrs PC

Legal Corner

Goulston & Storrs PC on

Is a Liquidated Damages Clause Enforceable? Rue21, Inc. v Los Lunas Inv’rs, LLC, no. 18-CV-715, 2019 WL 1375405(W.D.Pa. Mar. 27, 2019). Landlord executed a letter of intent with a fashion retailer tenant in 2015 for a...more

Pillsbury Winthrop Shaw Pittman LLP

New York Bankruptcy Court Strikes Liquidated Damages Provision and Related Guarantee as Unenforceable Penalty

New York bankruptcy court cautions against liquidated damages provisions that are “invariant to the gravity of the breach.” Liquidated damages provisions must be based on a “causal link” between the anticipated harm and...more

Miller Starr Regalia

Built-In Contract Remedies: Avoiding the Unenforceable Penalty

Miller Starr Regalia on

Under California law, a provision of a contract found to impose a penalty is unenforceable as a forfeiture and contrary to public policy. The characteristic feature of a penalty is the lack of proportional relation between...more

Shutts & Bowen LLP

Top 10 Mistakes Florida Commercial Real Estate and Leasing Brokers Make

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A good deal of our practice involves litigation over busted deals – sales of real estate, sales of businesses, commercial leases. By the time we’re asked to get involved, the deal is usually already dead, with the parties...more

Blank Rome LLP

Leases

Blank Rome LLP on

TRUE LEASE V. DISGUISED SECURITY INTEREST - The characterization of a transaction as either a true “lease” or a secured transaction is likely to impact the putative lessor’s rights and remedies both with respect to the...more

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