Lease Agreement Act Of God

The Gap, Inc. v. Ponte Gadea New York LLC, No. 1:20-cv-04541 (S.D.D.N.Y. 2020) (the tenant seeks, among other things, the termination/termination of the lease on the grounds that the covid-19 crisis and civil law orders constitute an “accident” within the meaning of the force majeure clause leading to a permanent dismissal of the rent and the termination of the lease; The lessor objected to the breach of contract and argued that COVID-19 and the civil law orders did not fall within the scope of the force majeure clause and that the force majeure clause did not excuse the contractual obligation to pay the rent; The tenant responds with a general denial of the lessor`s claims regarding the force majeure clause and responds in the affirmative to the defence for other reasons; Tenant is seeking the suspension until the decision of Multidistrict Litigation Panel to consolidate this and 32 other materially similar actions against tenants in the course of federal courts; Multidistrict Litigation Panel refused.) (06/12/2020 Complaint; 07/07/2020 Response and counter-claims; 28.07.2020 Counter-demand response; 08/11/2020 Applicant`s Request for a Stay Pending Decision of the Multidistrict Litigation Panel to Accept Transfer of Federal Court Actions; 09/18/2020 Memorell of Law in Further Support of Motion for Summary Judgment; 09/25/2020 Reply of Law Memorandum) D2 Mark LLC v. OREI VI Investments LLC, No. 652259/2020 (N.Y. Sup. Ct. N.Y.

Cty. 2020) (hotel group tried, among other things, to impose an interim obligation on junior creditors to forcibly close after the hotel group failed to undertake a COVID-19 payment obligation, on the grounds that the loan agreement explicitly excused defaults “in connection with” a case of force majeure; The court requested a late sale by July 23 and ordered the junior creditor to issue a new economically appropriate sales announcement.) (06/06/2020 Appeals; 23.06.2020 Decision and decision on the applicant`s order to indicate the cause; 08/03/2020 So-Ordered Stipulation Discontinuing the Action with Prejudice) “Force majeure” is French for superior violence. This is just an unusual (and confusing) name for a standard clause (disposition) that is often included in contracts, such as commercial leases.B. Another point of review is whether the force majeure clause states that obligations under the lease can be excused or delayed if the obligation is in conflict with federal, regional or municipal laws, regulations or regulations. This is another determining factor in determining whether a landlord must respond to a tenant`s request after not meeting its obligations under the lease, given that most states have adopted regulations and proclamations declaring mandatory closure of commercial buildings and businesses because of COVID-19. It is precisely in the context of commercial real estate that it is important to verify your contract and proactively discuss the circumstances and options with an experienced lawyer, your landlord, tenant or lender. The option may include negotiating amendments and leniency agreements that specify in writing how the parties plan to manage the effects of the pandemic on their trade relations. Businesses should also carefully consider the tax and cash flow relief programs available to them by the federal government and the federal states and their respective authorities.

Commercial landlords and tenants should explore and discuss sources of tax and financial relief with their trusted lawyers, accountants, brokers and advisors.