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If the tenant and/or its tenant estoppel is important, consider asking them to alert you immediately if they have concerns about meeting response obligations. Your pending refinance or sale may go smoother if you are in...more
For commercial landlords, ensuring that tenants return the leased premises in the agreed-upon condition is crucial to protecting their property and income. One effective way to enforce this is by making a tenant's failure to...more
Commercial leases are a critical source of income and financial stability for property owners, but the current evolving economic environment presents many risks. One of the primary concerns is when a tenant falls behind on...more
Falling behind on rent or otherwise defaulting on lease obligations can lead to serious consequences for commercial tenants, including the landlord instituting legal proceedings for eviction and monetary damages. However,...more
When managing commercial real estate, landlords must navigate a complex array of legal, financial and operational challenges to protect their investments and ensure smooth tenant relationships. However, a series of common...more
When a business leases commercial space, it is common practice for the landlord to request that the company provide a personal guaranty, a protective measure taken to ensure landlords have recourse against a commercial lessee...more
On September 25, 2023, the Massachusetts Supreme Judicial Court issued an important decision that affects commercial landlords’ ability to accelerate rent as liquidated damages after a Lessee’s default in Cummings Properties,...more
In an important recent decision for Massachusetts landlords, the Massachusetts Appeals Court determined that a rent acceleration clause in a commercial lease constituted an unenforceable penalty where it permitted the...more
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
In March, when much of the country was first experiencing the effects of the COVID‐19 pandemic, it was commonly believed that things would return to normal soon. Nearly nine months later, most of us have come to realize that...more
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
An Israeli court recently rendered an interesting ruling on the impact of COVID-19. The case is question involved the lease agreement for the operation of a hotel. The lease agreement, executed in February 2020, provided...more
Many commercial tenants failed to pay April rent. Landlords may be thinking about applying security deposits or drawing down on letters of credit to cover tenants’ defaults....more
For more than 50 years, a commercial tenant threatened with eviction could count on obtaining a Yellowstone injunction tolling the tenant’s time to cure alleged lease defaults while challenging the legitimacy of those...more
Many litigants are familiar with the well-settled rule that an affirmative defense will be waived if it is not included in a CPLR 3211(a) motion to dismiss or in the answer (see CPLR 3211[e]). And so, lawyers tasked with...more
So, your distressed tenant filed for bankruptcy? Commercial landlords in this situation often are “surprised” to learn that their tightly wound lease agreements can be unraveled at the proverbial snap of a finger. The...more
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
When negotiating a commercial lease, one party or both parties often raise the issue of mitigation, generally meaning to make less severe. In the commercial lease context, it is most often discussed in the defaults and...more
In Franchise & High Properties, LLC v. Happy’s Franchise, LLC, a 2015 decision issued by the Court of Appeals in Michigan, the franchisor, Happy’s Pizza Franchise, LLC, signed a five-year lease for the commercial space to be...more