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Litigation

Ground Rent Reset Arbitration Is Unreviewable Until the Umpire Takes Work From One Side

A three-arbitrator panel valued the land under 100 West 57th Street at $301,250,000 and raised the ground rent from $4,360,587 to $24,602,184. On 3 September 2026 the First Department threw the award out, but not because the number was wrong. Nobody reviewed the number. The valuation standard decides what the rent becomes; the arbitration clause decides whether anyone ever looks at it again.

Percentage Rent Follows the Gross Sales Definition, Not Where the Goods Ship From

Brent Cross's landlords are suing John Lewis in the High Court over whether click-and-collect orders count toward turnover rent under a 1979 lease whose definition reaches orders 'received or filled at or from the premises.' U.S. shoppers will collect $177.9 billion of online orders in stores this year, and roughly three quarters of percentage rent misreporting already traces to exactly these transactions.

Your Liability Cap Disappears When a Disclosure Statute Applies

A landlord leased two greenhouses it knew contained asbestos and lead paint, said nothing, and repaired storm damage anyway. The county quarantined the property and the orchid grower lost its business. California's Court of Appeal held that neither the indemnity clause nor the waiver of consequential damages could shield a landlord whose negligence came from violating a disclosure statute.

A Takings Clause Reaches Shutdown Orders a Force Majeure Clause Misses

Free People kept storing inventory and shipping online orders from its Meatpacking District store while New York's shutdown orders were in force, and the district court called that enough occupancy to owe rent. The Second Circuit reversed a $6.7 million judgment, holding that the lease's takings clause protected the ability to operate a store, which is not the same thing as holding the keys.

Who Pays to Clear a Warehouse After a Bankrupt Tenant Rejects the Lease?

American Tire Distributors left forklifts, racks, and a 55-gallon drum of hazardous material in two Carolina distribution centers. The landlord spent almost $125,000 clearing them out and asked the bankruptcy estate to pay it as an administrative expense. A Delaware judge said the bill is a general unsecured claim, because a return-condition obligation is a rejection damages claim no matter when the tenant walked out.

A Bulk Sale Doesn't Erase a Tenant's Right of First Refusal

A West Palm Beach wine bar's unit was sold inside a 139-unit bulk sale, and nobody told the tenant. Florida's Fourth District Court of Appeal sent the deed back to be unwound. Portfolio and entity-level deals are driving transaction volume again in 2026, which is exactly the structure that runs over a single-property right of first refusal.