Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Case Notes
Early Termination Clause Can't Be Used Where All Lease Terms Are Not Met
In the case of Aircastle Advisor, LLC v. First Stamford Place SPE, LLC, DOC. NO.: CV16-6030179, Stamford/Norwalk J.D., at Stamford (9/6/17), the trial court sided with the property owner/defendant in a case in which the tenant sought to terminate the lease early as provided by the lease's terms, but could not because it was not in compliance with one of the requirements for early termination.
The plaintiff entered into a lease with a termination date of Dec. 31, 2022. However, the lease provided that the tenant could terminate the lease effective Dec. 31, 2017, upon giving sufficient notice, but only so long as the tenant remained “in occupancy of the entire premises.”
The tenant, after obtaining the landlord's consent, subsequently sublet a portion of the leased premises to another party. Later, the defendant assumed ownership of the property.
The tenant gave notice to the new landlord that it planned to terminate the lease on Dec. 31, 2017, but the landlord rejected the notice on the basis that the lessee was no longer the occupant of “the entire premises,” as the sublessee still occupied a portion of it.
The trial court looked to the language of the lessee's contract with the sublessee to determine the nature of that relationship. That sublease stated that the lessee delivered “possession” to the sublessee. As the sublessee was thus entitled to possession of a portion of the premises, it could not be said that the lessee remained “in occupancy of the entire premises.” The plaintiff's termination notice was therefore adjudged ineffective.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
How Secure Is the AI System Your Law Firm Is Using?
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.
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.
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.
The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies
Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.
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.