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Maryland Appellate Court: COVID-19 Restrictions Not Excuse for Tenants' Failure to Pay Rent
Looking primarily to states like Connecticut for guidance, the Appellate Court of Maryland concluded that economic challenges stemming from COVID-19 executive orders themselves are not sufficient to establish the affirmative defenses of frustration of purpose and legal impossibility for failure to pay rent.
David and Carolyn Marquis leased an Annapolis, MD, property for a restaurant/pub known as the Chesapeake Brewing Co. The couple operated the business without substantial difficulties until the arrival of the COVID-19 pandemic and when Gov. Larry Hogan issued an executive order in March 2020 limiting bars and restaurants to carryout orders.
The Marquises asked their commercial property landlord, John Critzos II, to abate the April rent due to their inability to operate the restaurant/pub as usual. The landlord and tenants never reached an agreement and the Marquises never paid rent, but rather they informed Critzos on April 23, 2020, that they wished to terminate the lease, according to the appellate court's opinion filed in January. John Critzos, II v. David Marquis, et al., Md. App. Ct. No. 293, Sept. Term 2022. Opinion filed on Jan. 3, 2023, by Berger, J.
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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.