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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
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.
To print this article, all you need is to be registered or login on Mondaq.com.
Courts in three different jurisdictions recently handed down
decisions against commercial tenants in disputes with their
landlords over rent obligations during the COVID-19 pandemic,
rejecting the tenants common law defenses and interpreting the
leases as written.
Illinois State Court
Ponte Gadea Chicago, LLC v. Banana Republic,
LLC, No. 20 L 6235 (Ill. Cir. Ct., Cook Cty Mar. 24,
2021) - The landlord sued tenant Banana Republic for not
paying rent during the pandemic. In response, Banana Republic
raised fifteen common law defenses, including frustration of
purpose and impossibility, and asserted a four-count counterclaim