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Mass. Appeals Court Holds That Email to Landlord Constituted 'Effective Notice' to Prevent Automatic Lease Renewal
Despite a provision in a commercial lease that prohibited electronic notice, the Massachusetts Appeals Court sided with a tenant in holding that an email to its landlord constituted effective notice to opt out of an automatic five-year lease extension.
After considering other spaces within its landlord's portfolio, Sourcing Unlimited, Inc., doing business as Jumpsource, opted to close its leased office space with Cummings Properties. In January 2016, Jumpsource's vice president of sales sent an email to Cumming's account manager about the plans to close the store at the end of the contract on Nov. 30, 2016. The account manager acknowledged the message and encouraged the tenant to consult the lease for more information pertaining to extension, renewal, and/or cancellation options, according to the court's opinion filed June 7.
In April 2016, the landlord sent Jumpsource a letter that the tenant did not have "adequate insurance on file," and that it was in default of the lease. In another e-mail, Jumpsource inquired how it should proceed since it only needed office insurance through the end of November. However, Cummings claimed that, pursuant to Jumpsource's lease, it could not accept non-renewal notices by email and instead required notice by certified mail or recognized overnight courier, the opinion said.
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