The ABA Section of Litigation announced a free roundtable to discuss Cotenancy clauses after a recent decision by a California appeals court, Grand Prospect Partners, LP v. Ross Dress for Less. You can find the link for registration here.
Cotenancy clauses in retail leases are common provisions that allow a tenant to abate rent and/or terminate the lease if the landlord fails to meet a cotenancy requirement under the lease. In a case of first impression, in Grand Prospect Partners, LP v. Ross Dress for Less, although the California Court of Appeal upheld the termination right, it struck down the rent abatement remedy as an unenforceable penalty. Does the case have a sweeping impact for negotiated retail leases in shopping centers across the country? Panelists will explore the implications of the case for retail landlords and tenants and its impact on the drafting of cotenancy clauses and the enforceability of the remedies negotiated by the landlords and tenants.
The program will be moderated by Howard K. Jeruchimowitz of Greenberg Traurig and will include speakers addressing what this decision means to commercial landlords and tenants. The panelists will be Rosie Rees of Pircher, Nichols & Meeks who will discuss the the landlord's perspective and Ellen Sinreich of the Sinreich Group who will discuss the tenant's perspective.
Sign up and join us. No CLE credit but this is a burning issue in retail leases and is causing some disruption in the industry.