News & Analysis as of

Frustration of a Common Purpose

Weintraub Tobin

How New Legislative Policy May Affect COVID-Related Lease Disputes

Weintraub Tobin on

Over the last eighteen months, we have been forced to devote significant resources to interpreting how largely-forgotten legal doctrines apply to real estate contracts in a post-COVID world. These principles, including force...more

Cadwalader, Wickersham & Taft LLP

See You in September August 2021 - There Was No 'Gap' in the Lease Language: COVID Is Not a Casualty

On June 29, 2021, in The Gap, Inc. v. 170 Broadway Retail Owner, LLC, the New York Appellate Division, First Department, overturned an earlier decision by the New York Supreme Court and issued a decisive victory to commercial...more

Kramer Levin Naftalis & Frankel LLP

Sustained or Transitory? Delaware Court of Chancery Finds No MAE Absent Proof of Durationally Significant Effect on Business

Prior to the Delaware Court of Chancery’s opinion in Akorn, Inc. v. Fresenius Kabi AG, C.A. No. 2018-0300-JTL, 2018 WL 4719347 (Del. Ch. Oct. 1, 2018), aff’d 198 A.3d 724 (Del. 2018), no Delaware court had found the existence...more

Jones Day

Construction Lockdown: Potential Impact of COVID-19 on Construction Projects in Greater Sydney

Jones Day on

Under the latest New South Wales Public Health Order, all non-urgent work at construction sites in Greater Sydney has been paused from 12:01 a.m. on Monday 19 July until 11:59 p.m. on Friday 30 July....more

Hogan Lovells

Recent U.S. Court decisions in commercial lease disputes due to COVID-19

Hogan Lovells on

The advent of the COVID-19 virus and related shut-downs that commenced in early 2020 have had a dramatic impact on commercial real estate throughout the United States and resulted in numerous high profile lawsuits. ...more

Cadwalader, Wickersham & Taft LLP

Summer's Coming, May 2021 | Issue No. 24 - COVID-19 Update: Can't Lose What You Never Had: Court Rejects All Legal Theories...

The United States District Court for the Southern District of New York (the “Court”) decided in Gap Inc. v. Ponte Gadea N.Y. LLC on March 8, 2021 that a retail tenant will not be able to use the COVID-19 pandemic as an excuse...more

Bryan Cave Leighton Paisner

Absolute Payment Obligations, Frustration & Stay of Execution - Latest Developments

In a decision handed down at the end of April, the Commercial Court, in Wilmington Trust SP Services (Dublin) Ltd and others v Spicejet Ltd [2021], has provided guidance on the English law doctrines of illegality and...more

Hogan Lovells

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

Hogan Lovells on

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

Holland & Knight LLP

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

Holland & Knight LLP on

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

Pillsbury Winthrop Shaw Pittman LLP

Court Finds Pandemic Does Not Satisfy Lease’s Casualty Clause

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

Holland & Knight LLP

March Decisions Bring Mixed Results for Parties to New York COVID-19 Commercial Lease Disputes

Holland & Knight LLP on

Two recent cases from New York state court came out on opposite ends of the landlord-tenant and landlord-guarantor divides over COVID-19-related commercial lease disputes. On the pro-landlord end of the spectrum, in Mept 757...more

Buchalter

Buchalter COVID-19 Client Alert: Mind the Gap: No Rent Relief for The Gap in New York

Buchalter on

In one of the latest and most high-profile decisions from across the country relating to commercial tenants’ rent obligations during the COVID-19 pandemic, the United States District Court for the Southern District of New...more

Hogan Lovells

COVID-19 – New Higher Regional Court rulings on the obligation to pay rent during the first lockdown

Hogan Lovells on

In February 2021, three Higher Regional Courts had to deal with the question of whether and on what legal basis the rents agreed in individual cases are to be temporarily reduced due to the official closure orders during the...more

Farrell Fritz, P.C.

The Commercial Division Continues to Rule Against Businesses Seeking Financial Relief Amidst COVID-19 Shutdowns

Farrell Fritz, P.C. on

We all hoped ringing in the New Year would mean leaving some of the hardships from the COVID-19 pandemic behind in 2020. However, in just two short months, businesses struggling with rent and other financial obligations due...more

Holland & Knight LLP

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

Holland & Knight LLP on

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

Mitchell, Williams, Selig, Gates & Woodyard,...

Terminal Contract/Environmental Regulations: Federal Appellate Court Addresses Claims of Excused Performance Related to Coal...

The United States Court of Appeals, Eleventh Circuit (“Eleventh Circuit”), in a February 17th Opinion addressed a dispute involving a terminal contract with a minimum coal tonnage use provision. See Drummond Coal Sales Inc....more

Conn Kavanaugh

Commercial Tenant Excused from Paying Rent During Government-Mandated Shutdown

Conn Kavanaugh on

A Massachusetts Superior Court judge recently ruled that the doctrine of frustration of purpose excused Caffè Nero, a high-end coffee shop, from paying rent while its business was shuttered by government mandate. Although the...more

Goulston & Storrs PC

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

Goulston & Storrs PC on

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

Farrell Fritz, P.C.

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

Farrell Fritz, P.C. on

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

Moritt Hock & Hamroff LLP

No Get Out Of Jail Free Card: Courts Less Than Receptive To Force Majeure, Impossibility, and Other Defenses

The increase in loan and lease defaults in the wake of COVID-19 has brought to the forefront numerous legal defenses by borrowers and tenants, such as force majeure, impossibility, and frustration of purpose. Force majeure...more

Pillsbury Winthrop Shaw Pittman LLP

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

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

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

Seyfarth Shaw LLP

New Decisions Give Further Guidance on Frustration of Purpose, Impossibility, and Related Doctrines

Seyfarth Shaw LLP on

As discussed in previous updates, courts across the country continue to grapple with the application of the legal doctrines of impossibility, frustration of purpose, and impracticability in breach of contract actions...more

White & Case LLP

COVID-19: Disruption to Art Transactions

White & Case LLP on

It would be a truism to note that COVID-19 has had a profound impact on many sectors globally. The art industry, which relies considerably on the human interaction between art dealers, artists, and members of the public, is...more

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

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JD Supra Privacy Policy

Updated: Apr 27, 2021:

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Information for EU and Swiss Residents

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Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

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Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

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Changes in Our Privacy Policy

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Contacting JD Supra

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Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

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