The Aftermath of 9/11: Courts Reject Policyholders' Attempts to Circumvent the Plain Meaning of Business Interruption Coverage
The terrorist attack on the World Trade Center resulted in a large number of business interruption claims. Stated simply, business interruption coverage is intended to pay the financial losses incurred by an insured during the period necessary to repair the damage caused by an insured loss. Typical business interruption provisions allow for reimbursement of income lost and payment of fixed and continuing expenses. However, business interruption claims are still governed by the general maxim of insurance law: Recovery of insurance proceeds is not intended to place the insured in a better position than it would have been without the loss. Nevertheless, many policyholders are turning to their insurance companies to reimburse them in ways never contemplated by the parties or their insurance contracts. A prime example is the unwarranted attempts to expand the parameters of business interruption coverage in the wake of 9/11.
Protecting Your Leasehold: Keeping Competitors at Bay
It is happening more and more — anchor stores going dark and landlords scrambling to fill the void. Unfortunately, in their zeal to relet, often landlords offer their empty spaces to prospective tenants who will change the structure of the center and compete with existing tenants. This article will discuss several bases upon which tenants may be able to rely to prevent a competitor from moving in, quite literally, next door.
Location, Location and Location (But Relocation?)
Given the age-old maxim of retailers that what matters is 'Location, Location and Location,' it is often difficult for an in-line retail tenant to confront the fact that its landlord can require it to relocate its store to other space in a mall or shopping center. On the other hand, owners of malls and shopping centers must retain the right to expand, to add new anchors and to remerchandise their properties from time to time — thus, the 'Relocation' provision found in virtually all forms of in-line retail leases. This article explores the major issues that a relocation provision creates for a retail tenant and how some of those issues might be addressed in the lease.
COURT WATCH
Highlights of the latest franchising cases from around the country.
IN THE MARKETPLACE
Central Leasing Corporation of Birmingham, AL has named Barry Thomas as credit manager. Formerly vice president and group manager at SouthTrust Bank, Thomas will be responsible for overseeing the credit department for the commercial leasing and finance company. In addition, he will also be responsible for managing day-to-day operations.
Automobile Lessors Beware: Vicarious Liability in Three States
A Rhode Island Supreme Court decision has caused lessors to think twice about leasing motor vehicles in the State of Rhode Island. In <i>Oliveira v. Lombardi</i>, 794 A.2d 453 (R.I. 2002), the Rhode Island Supreme Court held that two automobile leasing companies may be held vicariously liable under Rhode Island's vicarious liability statutes for the negligence of drivers operating motor vehicles titled in the leasing companies' name.
