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Unenforceable Contract Terms Commercial Leases

Seyfarth Shaw LLP

Federal Court: New York City COVID-19 Guaranty Law Unconstitutional

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On March 31, 2023, U.S. District Judge Ronnie Abrams of the Southern District of New York issued her highly anticipated ruling in the latest iteration of Melendez et al v. The City of New York, et al. Judge Abrams granted...more

Sullivan & Worcester

SJC Rejects Contractual Liability Waivers for “Willful or Knowing” Violations of Chapter 93A

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On January 24, 2022, the Massachusetts Supreme Judicial Court (SJC) issued a unanimous decision directly curtailing the enforceability of limitation of liability provisions in the context of willful or knowing violations of...more

Goodwin

Commercial Leasing in Massachusetts: Contractual Limitation of Liability Provisions Unenforceable for Willful or Knowing...

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The Massachusetts Supreme Judicial Court on January 24 issued an important decision impacting commercial landlords’ potential exposure to liability for multiple damages under Chapter 93A in H1 Lincoln, Inc. vs. South...more

Bradley Arant Boult Cummings LLP

Why Your Cannabis Contracts May Be Unenforceable Even if State Law Says Otherwise

Few industries promise rapid growth equal to that of the cannabis industry, with one study projecting the industry could reach $30 billion in annual sales by 2025. This growth continues to accelerate as more states legalize...more

Polsinelli

Simon says “Don’t Close Your Stores in My Shopping Centers”

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Simon Property Group is at it again. Two years ago, Simon took the shopping center world by storm when it obtained an injunction preventing Starbucks Corporation from shuttering 77 of its Teavana stores in Simon malls across...more

Troutman Pepper

Strategies for Landlords on Handling Government Tenant Holdovers

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Experienced landlords are familiar with the risks associated with a holdover tenant that does not leave the premises at the end of the lease. A holdover can prevent a new tenant from moving into the premises as scheduled and...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

Patton Sullivan Brodehl LLP

Can a Holdover Commercial Tenant Hold On to a Right of First Refusal?

In California, a holdover tenant (a tenant who remains in possession after the expiration of the written lease) has fewer rights than a tenant operating under a lease....more

McGuireWoods LLP

Virginia Governor Signs Bill Reversing Game Place Decision: Leases for More Than Five Years No Longer Must Be in the Form of a...

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Virginia’s General Assembly recently approved House Bill 2287 amending the Statute of Conveyances to remove the requirement that the conveyance of an estate in land for a term of more than five years must be in the form of a...more

Dechert LLP

Not Caring about (Profit) Sharing: Third Circuit Invalidates Profit-Sharing Clause on Anti-Assignment Grounds

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Can a profit-sharing provision in a commercial lease survive assumption and assignment by a debtor? Analyzing such a provision, the Third Circuit answered “no,” finding the provision to constitute an unenforceable...more

Lowndes

Your Lease Renewal Option May be Ineffective

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In its recent decision in Jahangiri, et al. v. 1830 North Bayshore, LLC, the Third District Court of Appeal asserted that a lease extension option based on “market rate” is insufficient to create a binding and effective...more

Polsinelli

Yes, Virginia, Leases for More than 5 Years Really Do Need to be in the Form of a Deed - Virginia Supreme Court Allows Early...

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Tenants (as well as landlords) seeking an early exit from a Virginia lease of more than 5 years have been given an assist by the Virginia Supreme Court in a recent case causing consternation among commercial real property...more

Ballard Spahr LLP

Seal or No Seal? Virginia Supreme Court Decision Should Prompt Closer Scrutiny of Leases

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A recent ruling by the Supreme Court of Virginia may invalidate hundreds of leases because they are not under "seal" and therefore do not meet Virginia's "Deed of Lease" requirement. Landlords and tenants should review their...more

Seyfarth Shaw LLP

Does Your Lease Read Like A Deed? Supreme Court Of Virginia Weighs In On Execution Requirements For Most Leases In The Game Place,...

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Seyfarth Synopsis: The Supreme Court of Virginia issued a unanimous opinion recently holding a 15-year commercial lease unenforceable since it was not executed with the formalities of a deed as required under Virginia law. ...more

Miller Starr Regalia

Built-In Contract Remedies: Avoiding the Unenforceable Penalty

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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

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