LJN Newsletters

Recorded restrictive covenants in commercial developments present many issues. Two important factors to consider when granting such covenants include: 1) the reoccurring impact that they may have over the life span of a shopping center, and 2) the potential impact of such covenants on the current and future objectives of landlords and tenants who are parties to them.

There are few shopping center lease clauses that are more important to a retail tenant than the exclusive use clause. For many retail tenants, the scope of the exclusive use clause represents the essence of the tenant's bargain with the landlord. A tenant's ability to "corner the market" in a retail center for its particular use adds tremendous value to the leasehold estate and can significantly expand the tenant's gross sales at the center.

New construction always involves myriad unknowns — cost and timing are two of the biggest. However, if you add the complication of negotiating a lease at the same time, the problems quickly multiply. This article addresses some of these issues and provides advice for the landlord's use to avoid ending up in a situation where the lease becomes unprofitable.

Designated, reserved parking spaces appurtenant to office leases are highly valued by certain types of tenants, especially in the downtown, metropolitan markets. Thus, a tenant's counsel must carefully consider the parking provision when negotiating an office lease. Landlord-oriented form leases often give the landlord the right: 1) to expand or change any parking area, 2) to temporarily close off portions of the parking areas for purposes of expanding, repairing, restoring, constructing or reconstructing the parking decks, and 3) to change, from time-to-time, the rules and regulations with regard to the parking area. The tenant's counsel should always make sure that the lease properly limits these rights so that they cannot be used in a manner that will potentially, adversely affect the tenant's use of its parking rights. All new rules should be limited by a "reasonableness" qualifier, and the landlord should be required to enforce the rules and regulations in a "nondiscriminatory manner as against tenant."

An expert retained in mass tort litigation may be required to focus on multiple cases consolidated for discovery and trial, involving thousands of pages of medical records, deposition transcripts, and other discovery material. Expert opinions in mass tort litigation must address both case-specific and generic issues. A statement that is innocuous in one case may be harmful when applied to another. Taken together with the technical sophistication of the issues involved in each case, these issues necessitate a measured approach for dealing with experts.

Many observers have noted that e-mail use often replaces personal phone calls and for employers is a more efficient and less disruptive way for employees to maintain the personal and home contacts they need. The military and other agencies recognize that e-mail is a convenient way for troops to stay in touch with their families and have set up "cyber tents" where troops line up to log on. It is also clear, however, that damaging material carried by phone doesn't carry the risk that the same information poses when put in writing and sent electronically.

This month:

Second Circuit defines standard for loss causation pleadings
SEC liberalizes the Quiet-Period rule
Employer recovers legal fees for frivolous portion of discrimination claim
D.C. Circuit directs SEC to reconsider mutual fund governance rule

American companies and their officers and employees doing business overseas are learning the hard way about the Foreign Corrupt Practices Act (FCPA). For many years after its enactment in 1977, the government initiated relatively few investigations and enforcement actions charging violations of the Act. This was largely due to the government's difficulties in evidence gathering. Recently, however, the number of such enforcement actions has increased significantly.