Understanding the Issues in Leasing Office Space for or to Federal Governmental Entities
Several federal agencies and independent agencies and commissions have leasing authority granted by the U.S. Congress (<i>ie</i>, NASA for specific space needs; FDIC; SEC; U.S. Military for recruitment stations and other specific needs; Smithsonian Institution and others). The General Services Administration ('GSA') provides a large percentage of the commercial leasing space needs for the balance of governmental entities and certain services for even those within their own authority. The GSA has recently retained third-party brokerage firms on a national basis to assist the government in its leasing of office space. As more brokers — and, in the future, lawyers — are asked to assist the government with its space needs, an understanding of the leasing issues specific to the government is required. This article details some of these issues, and suggests ways to address them in your lease.
The Doctrine of Implied Co-Insureds
Over the past several decades, federal and state courts nationwide have heard cases where the implied co-insureds doctrine has been asserted and have come to totally different conclusions. The doctrine holds that an insurer may not bring suit by way of subrogation against a tenant who negligently or willfully causes damages to property insured under an insurance policy procured by a landlord on the ground that the tenant is a co-insured under that policy. Recently, the U.S. District Court for the Southern District of New York considered a case involving the implications of the implied co-insureds doctrine and the events of Sept. 11, 2001.
Assuring the Lessors' Protections Afforded By the Finance Lease
Generally, the lessor/lessee relationship is governed by Article 2A of the Uniform Commercial Code (the "UCC"). In many respects, Article 2A mirrors Article 2, treating ordinary lessors like sellers. 2 James J. White & Robert S. Summers, Uniform Commercial Code '13-3 (4th ed. 2005). For example, under UCC '2A-210 the ordinary lessor has express warranty liability similar to that incurred by a seller under UCC '2-313. Additionally, Sections 2A-212 and 2A-213 impose the familiar warranties of merchantability and fitness for a particular purpose on ordinary lessors. A lessee can assert the lessor's breach of these warranties by effectuating setoff, by suit for damages or by withholding performance. <i>Id.</i> Furthermore, where the lessee has filed a petition for relief under Title 11 of the United States Code (the "Bankruptcy Code"), the debtor-lessee may object to the allowance of the creditor-lessor's claim for rejection damages by asserting that the leased equipment was defective or unsuitable for the lessee's particular business.
In The Marketplace
Highlights of the latest Equipment Leasing news from around the country.
Libeling Lawnmowers?
The tort of commercial disparagement falls generally within the penumbra of libel and slander-related claims, although it is overshadowed by the more commonly recognized version of the tort relating to personal claims (like those celebrities frequently bring against supermarket tabloids). Yet not only are claims based upon the libeling of an object a legitimate cause of action, they can result in verdicts for plaintiffs. A better understanding of this little-known tort is necessary if a company is to evade the risks it poses.
Avoiding Boilerplate Traps in Commercial Leases
Boilerplate in a commercial lease ' notably in the Miscellaneous section ' is not nearly as uniform and standard as one might think. Boilerplate provisions therefore merit careful review by each party to the lease, and sometimes vigorous negotiation. Law firms are often tenants but sometimes also landlords; the authors provide advice for protecting both interests.
Creating an Effective In-House Resource Guide
Living in the technology age, we are besieged by information: constant "breaking stories" on 24-hour news channels, e-mails at all hours to our handhelds, and phone calls to our cells. To remain competitive, companies have also followed the trend, providing reams of information and data to workers. As a result, employees now grapple with information overload and must evaluate and prioritize what information to read, disseminate and store, and what information to discard. This is a particularly significant problem for in-house counsel who must ensure that all employees have access to -- and know about -- information that is key to the operation of the company. More importantly, much of this information is meant to keep the company out of the courtroom and facing down litigation. So what's an in-house counsel to do?
