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Lockdowns, Landlords, & Litigation: Abercrombie & Fitch Flips The Script on Simon Property Group Inc.

Client Alert

Novel litigation between commercial property owners and tenants arises from COVID-19 lockdowns. Typically, owners sue for nonpayment of rent. But in Franklin County, Ohio, a large retail tenant turned the tables and sued the owner to recoup payments.

Abercrombie & Fitch (A&F), Columbus-based apparel retailer, recently filed suit against one of the nation’s largest landlords, Simon Property Group Inc. A&F, which leases properties from Simon, alleges that Simon “wrongfully extracted” rent payments on those properties during the lockdowns that covered the nation. The amount of rent and number of stores impacted by the lawsuit is not disclosed, but according to public filings, A&F demands return of all rent payments to Simon during a specified period.

A&F essentially argues that it was not obligated to pay rent because it was locked out of its premises. More specifically, A&F argues that “the government-mandated closures amounted to ‘prohibitions’ under the terms of the lease agreements such that A&F was, and is, entitled to an abatement of any and all rent and other charges” during the lockdown. A&F maintains that Simon’s mere demand for payment during the lockdown constitutes a breach of contract, and any/all payments remitted were “under protest” and should be returned.  

Seeking to gain leverage by adopting an aggressive posture is a classic litigation technique that is now being applied in these unprecedented times. Whether the tactic will be fruitful depends on innumerable variables that begin with the contract language between the parties. Given the size and sophistication of the litigants, copycat actions and/or landmark precedents are likely to result.

For more information, please contact our Real Estate or Litigation teams.

To stay updated, please visit our Resources page regularly.


Community Banks: Collaboration, not isolation, is the key to protecting/ enhancing the cannabis business you pioneered

As we prepare for the plenary session of the informal institutional cannabis lenders community announced in my previous article, I am pleased to advise that participants now include 5 of the best-known dedicated loan funds; a select group of commercial banks ranging in size from single state community banks to mid-size regionals making cannabis loans into the mid-8 figures; and, a syndicator of credit union cannabis loans.

Inflation Reduction Act: Healthcare Provisions

On August 16, 2022, President Joe Biden signed into law the Inflation Reduction Act (the “Act”), a landmark climate, healthcare, and tax bill. Though the Act’s climate provisions have received most of the media attention, the healthcare aspects of the Act present some of the most significant changes to the American healthcare system since the passage of the Affordable Care Act.

The Current State of Assignment of Benefits Litigation in Florida

On May 25, 2022, Florida lawmakers approved property insurance reforms that remove attorney’s fees, with respect to assignment of benefits (“AOB”) property insurance litigation. One-way attorney’s fees are a longstanding problem in Florida and the reforms come at a time when AOB litigation increasingly affects homeowners in a negative way.

Proposed Community Revitalization Grants for Ohio Projects

Jason A. Butterworth client alert ohio tax credits historic preservation tax credits community revitalization grants

Ohio Senate Bill 225 Paves the Way for Greater Investment in Opportunity Zones and Historic Districts

Ohio Senate Bill 225 is poised to make dramatic enhancements to certain tax credit programs in Ohio, specifically those surrounding investments in “Opportunity Funds” and historic buildings. Signed into law by Governor Mike DeWine in June 2022, the Bill is positive news for real estate developers working to revitalize Ohio communities with investment and rehabilitation projects.