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Highlights In its Business Litigation Session, the Massachusetts Superior Court granted partial summary judgment in favor of a commercial tenant café, holding that its payment obligations were discharged for the period of time when on-premises consumption of food and beverages was prohibited due to Gov. Charlie Baker's COVID-19 orders. Relying on an express lease provision limiting the tenant's use of the premises to the operation of a café, and interpreting the lease as not allocating [...]

Harsh facts do no automatically lead to an equitable result. In a recent case, a commercial tenant signed a New York City lease that contemplated the tenant would "build-out" the leased "white box" space into a second-floor gymnasium. The day after the signing, construction was stopped, and gyms were closed by Executive Order due to the pandemic. ITS Soho LLC sought rescission and termination of a long-term lease for second-floor space with 598 Broadway Realty [...]

With COVID-19 raging and many businesses, large and small, seeking to manage their overhead and obligations, commercial landlords and tenants are examining their leases for potential modifications that would enable them to preserve their cash flow in the short-term without damaging each other's long-term prospects. The effects of the pandemic continue to be felt, and the legislative process is beginning to address some of the commercial repercussions brought on by the rapid onset of this public [...]