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On Nov. 27, 2017, the Marion County Superior Court in Indiana granted Simon Property Group, L.P. (Simon) a preliminary injunction prohibiting Starbucks Corporation from “(a) Failing to occupy and conduct business as usual in the leased premises for any of the Teavana stores at any Simon shopping center owned in whole or in part or managed by Simon, including any failure to be open and operating during normal business hours, as required by the Leases; and (b) Conducting, promoting, or advertising any fire, ‘going out of business,’ or similar sale, as prohibited by any of the Leases.” Simon Property Group, L.P. v. Starbucks Corporation, No.49D01-1708-PL-032170, 2017 WL 6452028, at 27 (Ind. Super. Nov. 27, 2017).
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There are differences between assignments of leases and collateral assignments of leases, and each has aspects that parties to these agreements should expect and look out for. Let’s discuss some of these issues.
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Under current New York law, even the most meritorious legal challenge to property development faces insurmountable barriers once construction starts, because absent the most egregious wrongdoing, the courts will not order demolition of completed buildings, and current law makes it virtually impossible to obtain a preliminary injunction to halt construction.
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