News & Analysis as of

Frustration of a Common Purpose Landlords

Freiberger Haber LLP

The First Department Dismisses COVID-19 Based Frustration of Purpose and Impossibility Related Defenses In Rent Arrears Action

Freiberger Haber LLP on

Among the problems resulting from COVID-19, is the pandemic’s effect on business. Numerous businesses were forced to close due to lock downs and supply chain issues. The economic slowdowns and business closures caused by...more

Tucker Arensberg, P.C.

Pennsylvania Superior Court Holds that Doctrines of Frustration of Purpose and Impracticability/Impossibility of Performance are...

Tucker Arensberg, P.C. on

In the first Pennsylvania appellate case addressing the effects of government-ordered business closures due to the Covid-19 pandemic on a commercial lease default, the Pennsylvania Superior Court has held that the traditional...more

BCLP

Frustration and rent abatement in commercial leases - Hong Kong Court rules on the impacts of COVID-19 pandemic

BCLP on

More than two years into the COVID-19 pandemic, anecdotal reports are that there have been many disputes between landlords and tenants about how the pandemic might affect the tenant’s payment obligations. Tenants reportedly...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

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

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

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

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

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

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

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

Pillsbury Winthrop Shaw Pittman LLP

Tour de Force: The Impact of a Force Majeure Clause (or Lack Thereof) on Other Excuse Doctrines

What impact, if any, does a force majeure clause (or absence of one) have on common law excuse doctrines such as impossibility and frustration of purpose? A party who chooses to omit a force majeure clause from a contract...more

Seyfarth Shaw LLP

New Court Decisions Analyze How the Pandemic Impacts Private Party Rights

Seyfarth Shaw LLP on

As discussed in our last update, the legal landscape continues rapidly to evolve in response to COVID-19. Six recent decisions, summarized below, highlight the continuing uncertainty as to the application of certain laws and...more

Buchalter

Buchalter COVID-19 Client Alert: Excusing Contractual Performance in Real Estate Agreements in the Age of COVID

Buchalter on

Since the outbreak of the COVID-19 pandemic, local municipalities and state governments throughout the country have implemented stay-at-home orders and mandated closures of businesses and restaurants to lower the spread of...more

ArentFox Schiff

New Developments in COVID-19 Litigation for New York City Landlords: Saving Grace or Hail Mary?

ArentFox Schiff on

Since the COVID-19 pandemic began, real estate owners and tenants have faced unprecedented day-to-day operational challenges from the loss of business and income. Two new real estate lawsuits seek to address these issues. ...more

Weintraub Tobin

Frustration Of Purpose: How Two WWII-era Cases Provide Guidance Regarding Lease Enforcement During the COVID-19 Health Crisis

Weintraub Tobin on

Unlike the Great Recession in 2008, landlords and tenants responding to the negative economic impact of the COVID-19 health crisis appear to be focusing more on rent relief as opposed to strict interpretation and enforcement....more

Kramer Levin Naftalis & Frankel LLP

Commercial Leases in New York: Enforcement Is on Pause, but Negotiations Should Be Ongoing

New York courts are resuming some operations, but eviction proceedings, including for violations of commercial leases, are still suspended. However, those contracts — and the obligations they created — still exist. ...more

Seyfarth Shaw LLP

Is there Wiggle Room for Performance of Lease Obligations by Retailers Under New York Law?

Seyfarth Shaw LLP on

Much has been written about the general applicability of the frustration of purpose, impossibility, and impracticability doctrines to performance of leases and other contracts in the wake of COVID-19....more

UB Greensfelder LLP

[Webinar] COVID-19 Collision between Landlords and Tenants: Legal Theories and Compromise Strategies - May 20th, 2:00 pm - 3:00 pm...

UB Greensfelder LLP on

As a result of COVID-19, landlords and tenants are coming face-to-face with legal theories that they may never have encountered before, such as force majeure, frustration of purpose, impossibility of performance,...more

Dickinson Wright

COVID-19 and Its Impact on Performance of Commercial Leases: A Review of Force Majeure, Impossibility of Performance, and...

Dickinson Wright on

As COVID-19 spreads throughout the United States and governors issue “shelter-in-place” orders and mandate the closure of non-essential businesses, landlords and tenants have encountered new and evolving challenges in meeting...more

Morgan Lewis

Leasing Considerations for Tenants and Landlords During COVID-19 Pandemic

Morgan Lewis on

Tenants and landlords should consider whether certain provisions such as force majeure, frustration of purpose, and/or impracticability of performance can protect them under current leases—and whether to include such...more

K&L Gates LLP

COVID-19: Effects on Payment Obligations of Tenants in Germany

K&L Gates LLP on

Due to the COVID 19 pandemic (hereafter, “COVID-19”), the closure of numerous shops and other businesses has been ordered by the authorities. Other shops and businesses are suffering losses in sales, some of them severe. As a...more

Adler Pollock & Sheehan P.C.

Potential Impact Of COVID-19 On Commercial Leases And Options For Landlords And Tenants

As COVID-19 continues to imperil the health of Americans, many state and local leaders have ordered businesses to close or to reduce services. In Rhode Island, for example, Governor Raimondo ordered restaurants to cease...more

Akerman LLP

COVID-19 Impact On Commercial Leases In New York

Akerman LLP on

The COVID-19 pandemic and the United States’ efforts to “flatten the curve” and slow the spread of the disease present considerable issues for commercial tenants and landlords. For instance, the Governors of New York, New...more

Dechert LLP

Not Everyone Finds Brexit Frustrating

Dechert LLP on

The English High Court has ruled that Brexit cannot be used as a reason to terminate a contract on the grounds of frustration. While the judgment concerned the effects of Brexit on a commercial lease, it reaches further than...more

25 Results
 / 
View per page
Page: of 1

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide