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SDNY Rejects All COVID-19 Legal Theories from GAP


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COVID-19 Update: Can t Lose What You Never Had: Court Rejects All Legal Theories Asserted by Retail Tenant
Wednesday, May 19, 2021
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 for not making rent payments under multiple legal theories.
This case is one of many cases now before New York courts in the aftermath of New York’s decision to shut down non-essential businesses during the rise of the COVID-19 pandemic.   The Gap Inc. (the “
GAP”) commenced the action against its landlord, Ponte Gadea New York LLC (“ ....

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Frustration Of Purpose And Impossibility Doctrines In The COVID-19 Era - Coronavirus (COVID-19)


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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 frustration of purpose and
impossibility for relief. Both of these doctrines allow for the
argument that a default is excusable under circumstances that were
unforeseeable to the parties at the time of the contract s
formation. While commercial tenants sometimes use these doctrines
in tandem, they are distinguishable in their underlying aims. The ....

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