Today's Approach to Distressed Situations: A Lessor's Guide
August 29, 2007
Back in 1985, one of us contributed to an industry publication an article titled <i>Strategies for Recovery in Lessee Bankruptcy</i>. Twenty-two years later, the landscape of bankruptcy law and the leasing industry have changed dramatically, and issues and problems faced by the equipment lessor today have much different priorities. As the equipment leasing community contemplates the landscape today, some new approaches and decision drivers face the leasing executive when his lessee files Chapter 11, or threatens to do so.
Court of Appeals Prohibits Section 8 Terminations
August 29, 2007
In <i>Rosario v. Diagonal Realty, LLC</i> (<i>infra</i>), the Court of Appeals addressed an issue that has perplexed New York courts since Congress amended the section 8 housing program almost ten years ago: Can a landlord terminate its participation in the program at the expiration of a rent-stabilized lease? The Court of Appeals held that the rent stabilization code prohibits termination, and that federal law does not pre-empt the code.
The Leasing Hotline
July 31, 2007
Highlights of the latest commercial leasing cases from around the country.
Making the Work Letter Work
July 31, 2007
Part One of this series described six considerations to address in a work letter where the landlord performs the work at its own expense. The conclusion addresses work letters in which the work is done at the tenant's expense by either the landlord or the tenant.
In the Spotlight: Be the Quarterback
July 31, 2007
Most real estate transactions involve not only a lease or purchase of property, but construction and/or development of the property as well. Transactions commonly require the participation of several people, forming a team of experts, to bring the transaction successfully from concept to fruition. Team members may include the real estate broker (or in-house real estate manager), construction manager, architect, site development manager, civil engineer, surveyor, land use/entitlement attorney, environmental attorney, title company, and real estate attorney, as well as paralegals. The entire team needs a central point for the coordination and dissemination of information coming from each team member's particular area of expertise. The large majority of such information will make its way into the contract being drafted and negotiated by the real estate attorney and necessitates that the real estate attorney take the lead (<i>i.e.</i>, be the quarterback) to coordinate, gather, and disseminate information from and to the team members.
Is a Tenant's Option to Purchase Assignable?
July 31, 2007
Last year, a Missouri appellate court affirmed a lower court's holding that where a lease prohibited a tenant from assigning its interest in the lease without the landlord's consent, the tenant also could not assign an option to purchase the real property the tenant was leasing from the landlord, without the landlord's consent. That court held that a tenant's rights under an option to purchase were a covenant that ran with the land, and that the tenant could not assign those rights without the landlord's consent because the lease limited assignment of the lease generally. <i>Megargel Willbrand & Co., LLC v. Fampat Limited Partnership</i>, No. ED 86570, 2006WL956963 (Mo. Ct. App. Apr. 11, 2006)
