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Award of Liquidated Damages Upheld In a Retail Lease Where the Tenant Improperly Discontinued Operations |
August 21, 2009
Previously published on June 9, 2009
In today's troubled economic climate, it is increasingly common for retail tenants to cease or suspend operations and "go dark." Even if the tenant continues to pay contract rent and common area maintenance charges, discontinuance of operations by itself will often be an actionable default if the lease contains a continuous operations clause. In just these circumstances, the California appellate court in El Centro Mall, LLC v. Payless ShoeSource, Inc., 174 Cal. App. 4th 58 (May 21, 2009), upheld an award of damages to a shopping center landlord based upon a liquidated damages clause contained in the retail lease.
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The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
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