Tenant Concerns When Drafting Accessibility and Visibility Protection Provisions
November 01, 2003
Often in leases, particularly retail leases, the tenant seeks to protect the accessibility and visibility of the area immediately in front of its store location. For that purpose, landlords and tenants create language that prevents the landlord from placing any retail operation, structure or obstruction in front of the tenant's store within a certain number of feet or a designated area in the common area (often referred to as a "Restricted Area"). However, very often due to the vagueness of the language included in this type of a provision, as well as due to the limited nature of remedies available in this type of a provision, the tenant does not receive the type of accessibility and visibility protection that it thought it had negotiated. As a result, tenants should consider the following factors when negotiating accessibility and visibility protection provisions in their retail leases: (i) include a picture or site plan designating the "Restricted Area"; (ii) identify any specific remedies attributable solely to this provision; and (iii) limit competing uses for stores in the Restricted Area, if the existing retail tenants in the Restricted Area ever relocate from their existing locations or vacate the retail facility.
The Chapter 11 Giveback: Preventing Preferential Transfers When Negotiating Settlement Agreements with Defaulting Tenants
November 01, 2003
You negotiated a settlement for your landlord client with a tenant that had not paid rent for a number of months, and, as part of the settlement, you recently received all the defaulted payments. Shortly thereafter, however, the tenant commenced bankruptcy proceedings. Moreover, accompanying the notice of commencement of bankruptcy was a summons and complaint against your client in which the debtor/tenant seeks the recovery of every settlement payment made, claiming they were preferential transfers.
In the Spotlight: Request in Advance Master Landlord's Consent to Sublease
November 01, 2003
In many instances a prospective sublandlord requires the consent of its master landlord in order to enter into a sublease. Virtually all well-crafted subleases are expressly contingent upon the receipt by the parties of a written consent by the master landlord to the sublease.
Dueling Provisions: Creditor Prevails in Showdown Between Bankruptcy Code Sections
November 01, 2003
A Missouri bankruptcy court has permitted a creditor to take possession of spare aircraft parts and equipment from a debtor despite the fact that the creditor failed to perfect its security interest in the equipment. In an issue of first impression in the Sixth Circuit, the court held that under the plain language of Section 1110 of the Bankruptcy Code, a creditor, as a conditional vendor, had a right to take possession of the collateral pursuant to its agreement with the debtor, and that this right was not limited or otherwise affected by any other section of the Code (including Section 544) or by any power of the court. <i>Vanguard Airlines, Inc. v. International Aero Components, Inc.,</i> 295 B.R. 908 (Bkrtcy.W.D.Mo.,2003).
Around the Firms
October 01, 2003
Attorney movement among major law firms and corporations.
The Leasing Hotline
October 01, 2003
Highlights of the latest commercial leasing cases from around the country.
