Force Majeure & COVID-19: New Case Offers 4 Key Pointers
Can a tenant who can’t operate due to a COVID-19 public health emergency order rely on the force majeure clause of its lease to forgive its obligation to pay rent?
This has been perhaps the biggest question in all of commercial leasing law ever since the pandemic began. And now for the first time, a court has actually addressed the question. And the answer is not one that landlords are going to like. Here’s a look at the so-called In Re Hitz case and what it portends for other landlords with force majeure clauses in their leases.