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Commercial Litigation Insurance Litigation Landlord Tenant Law Litigation

Commercial Lease Requirements During the Pandemic

Can a commercial tenant that is required to be closed during the COVID-19 pandemic be relieved of, or does it have a defense to, the obligation to continue to pay rent? The short answer is possibly yes, but the situation is unprecedented and the answer may have to be determined in litigation.

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Under the current circumstances, with most businesses required to be closed, the question arises as to what a commercial tenant’s obligations are under the lease for its premises, most particularly with respect to rent. Can the tenant be relieved of, or does it have a defense to, the obligation to continue to pay rent? The short answer is possibly yes, but the situation is unprecedented and the answer may have to be determined in litigation.

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