UMNV 205-207 Newbury, LLC v. Caffé Nero Americas, Inc.

2021 WL 956069 (2021)

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UMNV 205-207 Newbury, LLC v. Caffé Nero Americas, Inc.

Massachusetts Superior Court
2021 WL 956069 (2021)

  • Written by Liz Nakamura, JD

Facts

Caffé Nero (CN) (defendant) leased commercial retail space from UMNV 205-207 Newbury, LLC (Newbury) (plaintiff) for a 15-year term starting in 2017. Pursuant to the lease, CN was permitted only to operate a sit-down café in the rented space. In March 2020, in response to the COVID-19 pandemic, the governor of Massachusetts prohibited the operation of all sit-down restaurants and all on-site consumption of food and beverages (the restaurant shutdown order). CN immediately ceased operations and notified Newbury that it could not pay rent until the restaurant shutdown order was lifted and the café was allowed to reopen. Newbury sent CN a default notice. In June 2020, in compliance with loosening government restrictions, CN opened takeout and outdoor-seating operations. CN offered to pay Newbury a higher percentage of sales in lieu of fixed rent, but Newbury refused. CN ultimately vacated the leased premises in October 2020. CN had not paid Newbury rent since March 2020. Newbury sued CN for breach of contract and moved for summary judgment.

Rule of Law

Issue

Holding and Reasoning (Salinger, J.)

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