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In the Spotlight: How to Negotiate Overtime Payments for Services
Office leases typically provide that the landlord will furnish services without additional charge, including heat, ventilating, and air conditioning (HVAC) during 'normal business hours.' Many leases specifically denote such hours, sometimes including up to 6:00 p.m. on weekdays, and also Saturday mornings. These hours are usually not controversial, but certain tenants sometimes negotiate the specific hours. The potential problem for tenants is that many leases state that a tenant will be billed for overtime HVAC (or other services) without specifying a rate for such services. This ambiguity allows unscrupulous landlords to gouge tenants for overtime services. A well-crafted provision should either specify the actual hourly rates to be charged by the landlord or provide for a fair mechanism to determine such rates. Asking for the specific rates in advance is prudent, depending on a particular building's floorplate and mechanical systems, overtime HVAC can be very expensive, and tenants should be aware of the expense before they sign the lease. At the very least, the landlord should be limited to charging the tenant for its actual out-of-pocket expenses, with no mark-up for profit or an administrative fee. A savvy tenant should also require the landlord to make such services available according to reasonable procedures, such as a phone call to the building manager, or the flip of a switch, as opposed to advance written notice to the landlord.
William Crowe is a partner with Mayo, Gilligan & Zito in Wethersfield, CT.
Office leases typically provide that the landlord will furnish services without additional charge, including heat, ventilating, and air conditioning (HVAC) during 'normal business hours.' Many leases specifically denote such hours, sometimes including up to 6:00 p.m. on weekdays, and also Saturday mornings. These hours are usually not controversial, but certain tenants sometimes negotiate the specific hours. The potential problem for tenants is that many leases state that a tenant will be billed for overtime HVAC (or other services) without specifying a rate for such services. This ambiguity allows unscrupulous landlords to gouge tenants for overtime services. A well-crafted provision should either specify the actual hourly rates to be charged by the landlord or provide for a fair mechanism to determine such rates. Asking for the specific rates in advance is prudent, depending on a particular building's floorplate and mechanical systems, overtime HVAC can be very expensive, and tenants should be aware of the expense before they sign the lease. At the very least, the landlord should be limited to charging the tenant for its actual out-of-pocket expenses, with no mark-up for profit or an administrative fee. A savvy tenant should also require the landlord to make such services available according to reasonable procedures, such as a phone call to the building manager, or the flip of a switch, as opposed to advance written notice to the landlord.
William Crowe is a partner with Mayo, Gilligan & Zito in Wethersfield, CT.
COVID-19 and Lease Negotiations: Early Termination Provisions
During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.
How Secure Is the AI System Your Law Firm Is Using?
What Law Firms Need to Know Before Trusting AI Systems with Confidential Information In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.
Authentic Communications Today Increase Success for Value-Driven Clients
As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.
Pleading Importation: ITC Decisions Highlight Need for Adequate Evidentiary Support
The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.
Generative AI and the 2024 Elections: Risks, Realities, and Lessons for Businesses
GenAI's ability to produce highly sophisticated and convincing content at a fraction of the previous cost has raised fears that it could amplify misinformation. The dissemination of fake audio, images and text could reshape how voters perceive candidates and parties. Businesses, too, face challenges in managing their reputations and navigating this new terrain of manipulated content.