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Failure To Pay Contract Terms

Goodwin

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

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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

Cadwalader, Wickersham & Taft LLP

ABCD ... ROFR and SLL June 2022 - The Strengths of Rights of First Refusal

On March 30, 2022, the New York State Supreme Court, New York County (the “Court”) decided in Times Square JV LLC v. Walber Broadway LLC that a ground lease-tenant that is in default under the ground lease for failure to pay...more

Lewitt Hackman

Franchisor 101: No Tax on Renewals

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A federal court in Virginia denied tax franchisor, Liberty Tax’s, motion to dismiss complaints by two of its area developers (“ADs”). The ADs claimed Liberty Tax breached their contract for wrongfully terminating, failing to...more

Pullman & Comley, LLC

Bonding Off Mechanic's Liens:  Not Just for Property Owners

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Property owners are often confronted with a contractor threatening a mechanic’s lien on their property. These liens may stem from a dispute between them and their contractor, or even between a subcontractor and a general...more

Farrell Fritz, P.C.

First Step in Successfully Fending off a Yellowstone Application: Be Sure To Give Valid Notice of Default

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Several weeks back, we reported on an apparent uptick in commercial lease disputes over the last 18 months in this new COVID era.  It only follows that there would be a corresponding uptick in Yellowstone applications from...more

Hogan Lovells

UK COVID-19 rent arrears: Courts provide clarity in a series of important cases

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It has been a busy couple of weeks in the UK with judgments in two important cases concerning COVID-19 rent arrears: Commerz Real Investmentgesellschaft mbh v TFS Stores Limited (TFS) ...more

Goulston & Storrs PC

Law of the Land – Real Estate Litigation Newsletter - February 2021, Volume 1, Issue VI

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CASES OF NOTE THE SECRET'S OUT Victoria’s Secret Stores, LLC v. Herald Store Owner LLC, 70 Misc. 3d 1206(A) (N.Y. Sup. Ct. Jan. 7, 2021) A New York court recently held that a retailer’s closure due to a state law imposed...more

Lowndes

Rental Acceleration Provisions in Commercial Leases

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If a tenant defaults upon payment of rent, the landlord does have a right to accelerate the balance of the rental due for the remaining lease term. This practice is not, however, favored by the courts; therefore, the...more

Farrell Fritz, P.C.

Work Performed in the Forum State May Be Insufficient to Establish Personal Jurisdiction Over Out-Of-State Defendants

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Recently, Justice James Hudson issued a decision testing the limits of New York’s Long Arm Statute. The Court was tasked with determining whether personal jurisdiction exists over an out-of-state defendant, based on a claim...more

Seyfarth Shaw LLP

Recent New York Decision Holds Restaurant Responsible for Rent During the Pandemic

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A Kings County Supreme Court Commercial Division Justice recently rejected a restaurant tenant’s argument that the Executive Orders issued in response to the COVID-19 pandemic frustrated the purpose of its commercial lease,...more

Seyfarth Shaw LLP

Latest Decisions on Force Majeure in the COVID-19 Context

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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

Burr & Forman

Court Recognizes Day-to-Day Changes Are Compensable Despite Contractual Waivers

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It happens all the time! The owner-contractor agreement contains a “no damages for delay” clause; a clause requiring that all changes be in writing before work is performed; and a clause requiring partial lien waivers and...more

Gray Reed

“Construction” of a Well Pad Requires More than a Survey

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In Evans Resources, L.P., et al. v. Diamondback E&P, LLC, two agreements left the terms “constructed” and “utilized” undefined. If the terms had been defined would the outcome have been different? Maybe. Should parties define...more

Troutman Pepper

Level 10 Construction v. Sea World LLC: Can Force Majeure Save Sea World?

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On June 8, 2020, Level 10 Construction, LP (“Level 10”), a construction company hired by Sea World San Diego (“Sea World”), filed a Complaint in California federal court alleging that Sea World is withholding over $3.2...more

Troutman Pepper

Michigan Federal Court Permits Subcontractor’s Quasi-Contractual Claims to Proceed Despite Existence of Express Contract Covering...

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P.A.L. Environmental Safety Corp. v. North American Dismantling Corp. Et Al., No. 19-11630, 2020 BL 198779 (E.D. Mich. May 28, 2020) - A Michigan federal court partially granted Consumers Energy Company’s (“CEC”) motion to...more

Burr & Forman

Lump Sum or Cost-Plus Contract: You Can’t Have It Both Ways

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It goes without saying that in the world of construction contracts … words matter! There is language in the Goes decision that a cost-plus contract imposes upon the contractor an implied duty to incur reasonable and proper...more

Troutman Pepper

Recent Decisions Recognize Limits on Lien Amounts Properly Includable Under Michigan and Connecticut Lien Statutes

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Lost profits, not part of unpaid contract balance, may be recoverable as consequential damages in contract claim, but cannot be included in lien. TSP Services Inc. v. National-Standard, LLC, 2019 BL 340267 (Mich. Ct. App....more

Carlton Fields

Ninth Circuit Reverses Dismissal of Case Involving Foreign Arbitration Award Based on Comity for French Appellate Ruling and Quasi...

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The parties entered into a contract under which the plaintiff Cerner Middle East Limited would provide hardware, software, and services to iCapital S/E to facilitate iCapital’s fulfillment of a contract that it had been...more

Troutman Pepper

The Lessor of Two Evils: Iowa Supreme Court Holds That Mechanic’s Liens Will Not Attach to the Property of a Lessor for Work...

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Winger Contr. Co. v. Cargill, Inc., No. 17-1169, 2019 BL 132092 (Iowa Apr. 12, 2019). On April 12, 2019, the Iowa Supreme Court affirmed a lower court ruling which held that, inter alia, the Iowa mechanic’s lien statute...more

Troutman Pepper

Colorado Court of Appeals Finds Contractor Satisfied Conditions Precedent Under Performance Bond

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Whiting-Turner Contracting Co. v Guar. Co. of N. Am. USA, 2019 BL 97923 (Colo. App. Mar. 21, 2019). This construction dispute involved rights and obligations under a performance bond supplied for an office building...more

Hogan Lovells

Liquidated damages on work never completed

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The English Court of Appeal recently considered what should happen when a contractor, through its own fault, never delivers any completed work, despite having contracted to do so by a particular date. In Triple Point...more

Troutman Pepper

Government’s Notice That It Questioned Certain Costs and Would Take ‘Appropriate Action’ Is Not a Notice of ‘Disallowance’ as...

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CB&I Areva Mox Servs., LLC v. United States, 2018 U.S. Claims Lexis 1549 (November 9, 2018) - Nearly two decades ago, the Department of Energy, National Nuclear Security Administration (“NNSA”) awarded a contract for the...more

Carlton Fields

Ninth Circuit Finds That Party Was A Third-Party Beneficiary Of Arbitration Agreement, And Affirms Order Compelling Arbitration Of...

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Three delivery drivers sued a transportation broker for failure to pay overtime and minimum wages, failure to provide rest and meal breaks, failure to timely pay wages upon termination, and willful refusal to pay wages on...more

Troutman Pepper

A Fire Destroying More Than Half of the Project Is Not a Cardinal Change Where the Parties Entered into a Separate Agreement to...

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IES Commercial, Inc. v. Manhattan Torcon, A Joint Venture, 2018 U.S. Dist. LEXIS 164973 (D. Md. Sept. 26, 2018) - In 2009, the Army Corps of Engineers hired Manhattan Torcon Joint Venture (“MT”) as general contractor to...more

Carlton Fields

Southern District Of New York Confirms Arbitration Award Despite Allegation Of Undisclosed Real Party In Interest

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After Hurricane Sandy hit the east coast in 2012, the Army Corps of Engineers contracted with Environmental Chemical Corp. (ECC) to conduct clean up on Fire Island, New York....more

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