Movers & Shakers
June 26, 2008
Brian Short, a real estate finance attorney, has joined Texas law firm Winstead PC as a shareholder. He will be located in the firm's Dallas office, working with the Real Estate Structured Finance Practice Group in the Business & Transactions Department. Short returns to Winstead after a short tenure at Morris, Manning & Martin, LLP, where he was a partner in the firm's capital financial markets, commercial lending and real estate development and finance groups.…
The Leasing Hotline
June 26, 2008
Highlights of the latest commercial leasing cases from around the country.
Landlord Liability For Tenants Trading In Counterfeit Goods
June 26, 2008
In addition to targeting counterfeiters, copyright and trademark holders have started going after commercial landlords whose tenants deal in fake merchandise. It is felt that this new strategy is needed in part because the counterfeiting retailers possess very few assets that can be seized and liquidated to compensate the copyright or trademark holder.
In the Spotlight
June 26, 2008
During lease negotiations with an anchor or other national tenant, it is customary for the tenant to slap on a laundry list of prohibited or 'noxious' uses and to require the landlord to subject the shopping center to the restrictions contained therein. However, before the landlord concedes several other historically noxious uses, the owner of a modern-day lifestyle center or mixed-use center, particularly one still under development, should look carefully at these standard restrictions and consider softening the restrictions to allow certain types of uses which are finding their way into upscale and first-class shopping centers.
Should I Stay or Should I Go?
June 26, 2008
The purpose of a 'cure period' provision is to allow the tenant an opportunity to cure a default under the lease before further action can be taken unilaterally by the landlord. However, what happens if the landlord attempts to terminate the lease before the tenant has cured the default and before the end of the cure period? Is this early notification invalid or does it become effective immediately upon the expiration of the cure period without cure?
Parent Corporations and Their Subsidiaries' Liabilities: Guidelines
June 26, 2008
In February 2007 the Illinois Supreme Court in a unanimous decision held as a matter of first impression that a parent corporation could be directly liable for its negligence to the estates of two employees of its subsidiary corporation. <i>Forsythe v. Clark USA.</i> The Illinois Court relied extensively on the unanimous 1998 opinion of the U.S. Supreme Court in <i>U S v. Bestfoods.</i> Both courts limited the reach of their opinions by making explicit the common law principle that corporate shareholders are not generally liable for the acts and omissions of their subsidiaries in the absence of active involvement of the parent in those acts or omissions.
Court of Appeals Affirms Owner Occupancy Rights Under Rent Stabilization
June 26, 2008
In its June 3, 2008, decision in <i>Pultz v. Economakis</i>, the New York State Court of Appeals unanimously ruled that there is no limit on the number of rent-stabilized units an owner can attempt to recover for owner occupancy. The ruling was a major victory for rent stabilized landlords, and a sharp rebuke to tenant advocates who claimed that multiple recovery for owner occupancy violated the letter and spirit of the Rent Stabilization Law. Indeed, the case continues a recent trend of favorable Court of Appeals decisions for landlords.
I Signed WHAT?!
June 26, 2008
The typical e-commerce 'Terms and Conditions,' the electronic equivalent of the fine-print contract that governs use of a sales Web site, creates such an unfriendly shopping environment that it makes the legendary 'No soup for you!' restaurant of the television situation comedy Seinfeld seem like the Welcome Wagon. Although I have often written about how the law affecting e-commerce firms ordinarily follows traditional law, the common e-commerce contract stands in stark contrast. Consider the following clauses from actual online agreements obtained in April and May ' and whether you have ever seen anything comparable in any real-world store, much less these Web stores' real-world affiliates.
