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Commercial Tenants and The Gap Ask for Rent Forgiveness Due to COVID

Commercial Tenants and The Gap Ask for Rent Forgiveness Due to COVID
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Recent U S Court decisions in commercial lease disputes due to COVID-19 | Hogan Lovells

Recent U S Court decisions in commercial lease disputes due to COVID-19 | Hogan Lovells
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The Gap s Bid To End NYC Lease Over Virus Faces Skepticism

A New York state appellate panel Thursday voiced doubts about The Gap Inc.'s argument that it can escape a 10-year Manhattan lease due to the COVID-19 pandemic given the "impossibility" of performing as a quality retailer while burdened by health safeguards such as plexiglass.

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Victoria s Secret Hit With Landlord Suit for Lapsed Store

Victoria s Secret Hit With Landlord Suit for Lapsed Store
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Commercial Division Dismisses Commercial Tenant s Complaint Seeking to Rescind or Terminate Lease and Avoid Rent Obligations | Patterson Belknap Webb & Tyler LLP

Recently, in Valentino U.S.A., Inc. v. 693 Fifth Owner LLC, Justice Andrew Borrok of the New York County Commercial Division dismissed a complaint brought by Valentino U.S.A., Inc. (“Valentino” or “Tenant”), which sought to rescind or terminate the commercial lease for its Manhattan luxury fashion store and to avoid its rent obligation.[1] Like many landlord-tenant disputes currently pending or recently decided in light of the COVID-19 Pandemic, this case involved the common law doctrines of frustration of purpose and impossibility. The Commercial Division held that neither doctrine excused Valentino’s rent obligation because the parties’ lease allocated to Valentino the risk that Valentino would not be able to operate its business.

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