A/R Retail L.L.C. v. Hugo Boss Retail, Inc.
New York Supreme Court
149 N.Y.S.3d 808, 72 Misc. 3d 627 (2021)

- Written by Kate Luck, JD
Facts
Hugo Boss Retail, Inc. (Hugo Boss) (defendant), a high-end retail store, leased commercial retail space from A/R Retail L.L.C. (A/R) (plaintiff) in The Shops at Columbus Circle, a luxury shopping mall in Manhattan. The lease was for a term of 13 years, and it contained a force majeure clause that provided a course of action for a party’s delay in meeting its obligation under the lease, including delay caused by orders of a government authority. The lease did not excuse payment of rent for any reason. Hugo Boss entered into the lease to obtain a high-traffic, high-visibility retail location. In March 2020, during the COVID-19 pandemic, the New York governor ordered retail stores to close. Accordingly, A/R closed the shopping mall, prohibiting Hugo Boss from operating or its employees from entering the store. A few months later, retail stores were allowed to reopen, but they had to comply with occupancy restrictions and reduced hours. After the reopening, the traffic was reduced, and business was not the same. Hugo Boss stopped paying rent after May 2020. A/R sued, seeking to recover unpaid rent and attorney’s fees for Hugo Boss’s breach of the lease. Hugo Boss sought reformation or rescission of the lease for frustration of purpose or impossibility of performance, among other claims. A/R moved for summary judgment.
Rule of Law
Issue
Holding and Reasoning (Cohen, J.)
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