Biglaw Agency Sues Landlord To Get better $30M In COVID Hire

covid closed signBecause of the pandemic, many Biglaw corporations voluntarily closed down their places of work, encouraging their attorneys and workers members to work remotely to assist cease the unfold of COVID-19. However in some areas of the nation, Biglaw corporations had been primarily compelled out of their places of work solely because of native occupancy orders and restrictions.

A type of corporations was Crowell & Moring. The agency says that it was put out of its Washington, D.C., workplace for greater than a 12 months because of the pandemic, and now could be making an attempt to recuperate $30 million in hire it claims it was not required to pay through the top of the coronavirus disaster. Reuters has the main points:

Washington-based Crowell stated in its grievance this month in District of Columbia Superior Court docket that its lease gave the agency a proper to abate hire after a “materials interference” inhibited utilizing its 391,757 square-feet of workplace area close to the White Home.

Native orders restricted Crowell’s workplace entry from March 2020 by way of Could 2021, which ran opposite to its lease settlement on use of the area, the agency stated.

Crowell stated it paid TREA Belief greater than $30 million in hire between April 2020 and Could 2021 however is entitled to a 98% abatement as a result of workplace entry “was decreased to lower than 2% of the conventional use and entry” underneath the lease.

Crowell has remained in its D.C. location for 30 years, however with such an incredible financial loss, a spokesperson stated the agency was “left with no alternative” however to sue. TREA Belief says it is going to “vigorously defend towards this meritless motion.”

That is neither the primary time a Biglaw agency has sued to recuperate funds associated to COVID-19 hire, neither is it Crowell’s first time at this rodeo. The agency sued its landlord in San Francisco in 2020, and that case was dismissed final spring. Jenner & Block settled a declare with its landlord again in 2021, whereas Schulte Roth & Zabel might be going to trial on a $10 million hire abatement declare this 12 months.

Better of luck to the agency because it tries to recuperate on its multimillion-dollar declare.

Regulation agency Crowell sues to recoup $30 mln in COVID-era hire [Reuters]

Staci ZaretskyStaci Zaretsky is a senior editor at Above the Regulation, the place she’s labored since 2011. She’d love to listen to from you, so please be happy to e mail her with any ideas, questions, feedback, or critiques. You may observe her on Twitter or join along with her on LinkedIn.

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