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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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Tour de Force: Rudolph v. United Airlines, Causation and Force Majeure | Pillsbury Winthrop Shaw Pittman LLP

In a recent decision, causation proved to be a determinative factor in the viability of multiple claims subject to the same force majeure clause. District judge rules that broad. ....

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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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The Secret's Out: COVID-19 May Not Excuse Commercial Rent Obligations | Farrell Fritz, P.C.

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The lingerie brand Victoria’s Secret (“VS”) has struggled in recent years. VS’ overtly sexy aesthetic has failed to keep up with shifting consumer tastes towards comfort and gender and size inclusivity. In 2019, VS canceled its marquee fashion show, which had run annually for 23 years, showcasing supermodels in VS’ trademark angel wings strutting the runway with millions tuning in to watch. In addition, the long-standing relationship between founder Leslie Wexner and convicted sex offender/disgraced financier Jeffrey Epstein has been given renewed attention, eventually leading to claims of a toxic culture of misogyny within the company. ....

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