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Landlord & Tenant Law Case Update
COVID-19 Does Not Trigger Frustration of Purpose or Impossibility Defenses
CW A&P Mamaroneck, LLC v. PFM WC-1, LLC, 2022 WL 804270, March 16, 2022
In commercial landlord's action for rent, landlord moved to dismiss tenant's counterclaims for a declaration that the COVID-19 pandemic excused it from payment of rent. The court granted landlord's motion, holding that the terms of the lease precluded frustration of purpose and impossibility defenses.
Landlord leased the subject premises to tenant for use as a fitness center. The lease provided that each party would be excused from performance for events outside of that party's control, but also provided that, notwithstanding the excuse provision, "no cause or event shall … release Tenant from, or permit a delay in, or excuse, they payment of any item of rent or additional rent …." When tenant ceased paying rent during the pandemic, landlord brought this action and tenant counterclaimed for a declaration that tenant owed no rent, relying on the defenses of impossibility of performance and frustration of purpose. Landlord moved to dismiss those counterclaims.
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