A few months ago, a Commercial Division court granted summary judgment in favor of the plaintiff-landlord in a case involving a commercial lease for a gym that was closed due to.
Commercial tenancies, COVID-19 and frustration of purpose – Maryland Daily Record thedailyrecord.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thedailyrecord.com Daily Mail and Mail on Sunday newspapers.
The United States District Court for the Southern District of New York (the “Court”) decided in Gap Inc. v. Ponte Gadea N.Y. LLC on March 8, 2021 that a retail tenant will not be able.
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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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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