The Leasing Hotline
January 01, 2004
Highlights of the latest commercial leasing cases from around the country.
Using Lease Provisions to Address Mold Growth
January 01, 2004
Mold growth has existed for centuries; litigation involving mold growth, however, has come into vogue only recently. Such litigation, despite its relative infancy, has proven costly to a variety of parties involved in the real estate industry — builders, property management companies, product manufacturers, commercial property owners, and insurers, among others. Verdicts in mold damage cases have occasionally reached multimillion dollar levels, while additional cases undoubtedly have settled for significant amounts. Landlords potentially could face major damage claims resulting from mold growth, and therefore it is recommended that landlords address mold-related issues by including in most leases specific provisions regarding mold growth.
A Guide to the Proposed Amendments to Article 2A
January 01, 2004
The American Law Institute (ALI) and the National Conference of Commissioners on Uniform State Laws (NCCUSL), the two organizations jointly responsible for drafting and updating the Uniform Commercial Code, recently approved proposed amendments to Article 2 — Sales, and Article 2A — Leases. The ALI approved the proposed amendments in May 2003 and NCCUSL in August 2002. These amendments are the culmination of a project that began more than 10 years ago.
In The Marketplace
January 01, 2004
Highlights of the latest equipment leasing news from around the country.
Landlord & Tenant
January 01, 2004
Recent rulings of importance to you and your clients.
Clearing the Confusion
January 01, 2004
As explained in last month's article, there has been a great deal of confusion in the courts regarding Section 365(b)(2)(D). In a detailed opinion on appeal, the Ninth Circuit diverged from two lower courts, holding that the most natural reading of subsection (b)(2)(d) requires a finding that the word "penalty" modifies both "rate" and "provision." This ruling, as discussed in last month's article, caused further confusion in the courts as to interpretation.
Selected Pitfalls to Avoid in the Sale of Refranchised Units
December 01, 2003
The sale of company units to franchisees ("refranchising") differs from a traditional asset sale because the transaction contemplates a continuous business relationship between the parties. The basic terms of this relationship should be outlined in a letter of intent and will be contained in the provisions of the various transaction documents, including the Asset Sale Agreement (ASA), related transfer documents, such as deeds, leases, subleases, assignments, bills of sale, etc., one or more franchise agreements and, if the obligation to develop additional units is part of the transaction, a development agreement. This article continues the discussion of refranchising in last month's issue by reviewing some of the issues that the parties should consider carefully as they document their on-going relationship post closing.
The Leasing Hotline
December 01, 2003
Highlights of the latest Commercial Leasing cases from around the country.
Advice on Avoiding Misunderstandings in Premises Measurement
December 01, 2003
What could be simpler, more mundane, and less worthy of a lawyer's attention than lease provisions dealing with a business term — the square footage of the premises? However, a lawyer's failure to define the agreed-upon method of its measurement properly in the lease can lead to headaches and even litigation as the lease term progresses. Because measurement standards are not mandatory or legislated, the parties are free, depending on their relative market positions, to agree upon the method to be used in the lease. Often the measurement of square footage is referred to in terms that are imprecise and have no legal definition. Depending on the area where the building is located, measurement methods may vary and a landlord may have its own method that is a modified form of a particular standard of measurement. Without a specified measurement standard and the right to confirm a landlord's measurement, a tenant could end up paying more for its space than it intended (or budgeted); and may later find itself unable as a practical matter to contest a landlord's measurement of an expansion space.
