October 3, 2022

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Court Finds Pandemic Does Not Satisfy Lease’s Casualty Clause

Just one calendar year into the pandemic, courts have practically uniformly uncovered that COVID-19 does not permit professional tenants to steer clear of their rent payment obligations. In this case, the courtroom continued that development, ruling that the pandemic was not a “casualty” that permits a tenant to abate its rent payments or terminate its lease. Neither the COVID-19 pandemic, nor linked governmental closure orders, constitutes a “casualty” beneath the conditions of the Gap lease simply because neither event induced actual physical damage to the…
By: Pillsbury Winthrop Shaw Pittman LLP