News & Analysis as of September 19, 2024

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Read guidance, analysis, and updates on the myriad issues arising from the global response to the COVID-19 pandemic. Updated hourly every day, the insights published here are written by leading lawyers and law firms helping to make sense of insurance, employment, tax, securities, M&A, risk management, and every other consideration touched by this crisis. Follow the channel for a daily email brief of the latest and best updates. less -

Maryland Appellate Court Addresses Obligation of Tenant Shut Down By COVID Order To Pay Rent

Rosenberg Martin Greenberg LLP on 12/28/2023

Nearly four years after the depths of the COVID-19 pandemic, issues concerning the legal consequences of executive and legislative orders shutting down business operations are still working their way through appellate courts...more

Court Rejects Commercial Tenant’s Argument for Relief From Rent Due to “Temporary Frustration of Purpose” During Pandemic

Patton Sullivan Brodehl LLP on 11/30/2023

Earlier this year, Money and Dirt covered a then recent case, West Pueblo Partners, LLC v. Stone Brewing Co., LLC, which was one of the first California cases dealing with the aftermath of the Covid-19 pandemic and the legal...more

Covid-19 Pandemic And Related Closures Do Not Excuse Commercial Tenant’s Failure To Pay Rent

Patton Sullivan Brodehl LLP on 5/26/2023

One of the questions in real estate law arising out of the pandemic is what impact the pandemic and related closure orders would have on commercial leases, and in particular a tenant’s obligation to pay rent. Many, if not...more

Florida Appellate Court Says Tenant Cannot Use Force Majeure Clause as Weapon Against Landlord

Burr & Forman on 5/19/2023

Last week, Florida’s Second District Court of Appeals handed down a pro-landlord decision arising out of the COVID-19 pandemic. See Fitness International, LLC v. 93FLRPT, LLC, No. 2D22-1182, May 10, 2023. One week later...more

To pay or not to pay: knowing when you can and can’t rely on a Force Majeure

Haight Brown & Bonesteel LLP on 5/18/2023

What is one way to prepare for the unexpected? A force majeure clause. The COVID-19 pandemic is the latest historical event that could neither be anticipated nor controlled by contracting parties at the time of contracting....more

Commercial Division Force Majeure Decision Provides A Good Overview of the Law Surrounding Leases and the COVID-19 Pandemic

Patterson Belknap Webb & Tyler LLP on 5/17/2022

A few months ago, a Commercial Division court granted summary judgment in favor of the plaintiff-landlord in a case involving a commercial lease for a gym that was closed due to COVID-19 restrictions. The decision in Amherst...more

Frustration of Purpose and Impossibility Doctrines in the COVID-19 Era

Holland & Knight LLP on 4/12/2021

In a survey of cases in federal, state and bankruptcy courts, commercial tenants seeking to delay or excuse the payment of rent because of pandemic-related downturns in business sometimes looked to the equitable doctrines of...more

The Importance Of Lease Drafting: Lease Language Takes Center Stage In “Cinemex”

Weintraub Tobin on 4/6/2021

When in the throes of protracted lease negotiations, frustrated clients often ask me whether a proposed term is truly necessary to the contemplated transaction. Most clients start these discussions with the goal of achieving...more

Court Finds Pandemic Does Not Satisfy Lease’s Casualty Clause

Pillsbury Winthrop Shaw Pittman LLP on 4/1/2021

One year into the pandemic, courts have almost uniformly found that COVID-19 does not permit commercial tenants to avoid their rent payment obligations. In this case, the court continued that trend, ruling that the pandemic...more

Tour de Force: Evolving Force Majeure Considerations One Year into the Pandemic

Pillsbury Winthrop Shaw Pittman LLP on 3/25/2021

As the pandemic has evolved, so too has the number and complexity of the questions arising in force majeure disputes. Regardless of whether a party is seeking to invoke, or defend against invocation of, a force majeure...more

Troutman Pepper COVID-19 Legal Issues Podcast Series: COVID-19 Commercial Leasing Trends (Part Two)

Troutman Pepper on 3/15/2021

Please join Troutman Pepper for the second installment of its COVID-19 Commercial Leasing Trends Podcast series on legal and business issues confronted by companies in light of the COVID-19 pandemic. Moderated by Troutman...more

Massachusetts Court: Café's Rent Excused by COVID Orders That Frustrated Lease's Sole Purpose

Holland & Knight LLP on 2/26/2021

The COVID-19 pandemic has strained commercial landlord-tenant relationships across the United States. As the courts wade their way through the backlog of lawsuits filed in 2020, there are a growing number of decisions...more

Hotel contracts - Deferred or suspended rent due to Corona

Hogan Lovells on 1/29/2021

Does the owner bear the risk in case of bankruptcy? Due to the tense situation in the hotel industry, various lessees are currently approaching their lessors asking for deferral or abatement of rent payments for the...more

The Secret’s Out: COVID-19 May Not Excuse Commercial Rent Obligations

Farrell Fritz, P.C. on 1/29/2021

The lingerie brand Victoria’s Secret (“VS”) has struggled in recent years. VS’ overtly sexy aesthetic has failed to keep up with shifting consumer tastes towards comfort and gender and size inclusivity....more

Bankruptcy Court Denies Retail Debtor’s State-Law Based Arguments to Avoid Paying Rent During Chapter 11

Pillsbury Winthrop Shaw Pittman LLP on 1/20/2021

A recent Chuck E. Cheese decision rejects the debtor’s/tenant’s request to avoid paying rent based upon state law equity arguments. CEC’s leases expressly do not permit rent relief even if force majeure is triggered. ...more

Buchalter COVID-19 Client Alert: Chuck E. Cheese: The Mouse Who Didn’t Get the (Rent Relief) Cheese

Buchalter on 12/22/2020

In a small victory for landlords of bankrupt tenants, the Bankruptcy Court for the Southern District of Texas has ruled that the Chuck E. Cheese parent company may not use its bankruptcy filing to avoid paying its rent. ...more

Bankruptcy Court Denies Debtors’ Motion to Abate Rent Due To COVID-19 Government Shutdown Orders

Seyfarth Shaw LLP on 12/16/2020

On December 14, 2020, Judge Marvin Isgur of the United States Bankruptcy Court for the Southern District of Texas, issued an important decision in the CEC Entertainment, Inc. (Chuck E. Cheese) bankruptcy case, Case No....more

COVID-19 Commercial Leasing Trends (Part One)

Troutman Pepper on 11/19/2020

Troutman Pepper COVID-19 Legal Issues Podcast Series Troutman Pepper is producing a series of podcasts on legal and business issues faced by companies during the COVID-19 pandemic. This episode features Troutman Pepper...more

Your Lease may be the Key to Relief amidst the COVID-19 Pandemic

Bond Schoeneck & King PLLC on 10/22/2020

Commercial tenants: remember that extensive and wholly uninteresting document entitled “Lease Agreement” that you scanned, signed and then shoved into a file folder and never thought of again? Well, it’s making a comeback....more

Latest Decisions on Force Majeure in the COVID-19 Context

Seyfarth Shaw LLP on 9/25/2020

As discussed in previous updates, COVID-19 has brought the concept of force majeure to the forefront across multiple practice areas. As the pandemic-caused shutdowns began, scholars and businesses alike re-examined the...more

10 Questions Your Litigator May Ask about Your Post-Covid Commercial Lease

Shutts & Bowen LLP on 9/24/2020

Much has been written about commercial real estate in a post-Covid world. As real estate users consider how Covid will change their space needs, they should also consider what provisions will serve them in future...more

La Cour supérieure du Québec libère un locataire de son obligation de payer le loyer dans le context

Blake, Cassels & Graydon LLP on 8/12/2020

Le 16 juillet 2020, la Cour supérieure du Québec (la « Cour ») a rendu un jugement particulièrement intéressant dans l’affaire Hengyun International Investment Commerce Inc. c. 9368-7614 Québec inc. Dans sa décision, le juge...more

Insights for New and Emerging Businesses Leasing in the Pandemic

Chambliss, Bahner & Stophel, P.C. on 8/6/2020

If you are a new or emerging business owner beginning the process of finding a suitable property to lease, it is important to be critical of the lease provided by the landlord. You should also attempt to negotiate each...more

Quebec Superior Court Grants COVID-19 Rent Relief

Blake, Cassels & Graydon LLP on 8/3/2020

On July 16, 2020, the Superior Court of Quebec (Court) issued a noteworthy judgment in the matter of Hengyun International Investment Commerce Inc. v. 9368-7614 Québec inc. In this judgment, Justice Kalichman interpreted the...more

Williams Mullen's COVID-19 Comeback Plan: Landlord and Tenant Negotiations for Existing Commercial Leases Amid the COVID-19...

Williams Mullen on 7/20/2020

Real Estate Partners Alyssa Carducci Embree and Robby Lawson discuss the responsibility for rent relief during a forced closure, landlord/tenant workouts for tenant’s continued operation in the premises, and tenant exit...more

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