Monday, June 16, 2008

Make sure you notice those notices

I always get a little concerned when my clients decide to send notices under contracts without consulting me. And, thanks to Peter Olson, here's why:

Here's the recent case (Genesco v. 33 North LaSalle Partners, No. 1-07-2782) where simply a tenant didn't follow the lease's Notice provisions and therefore the tenant DID NOT properly terminate the lease. The case gets a bit complex with various equitable arguments but the basic fact was simple: tenant sent lease termination to the wrong address. So instead of a $30k lease termination fee they're on the hook for the rest of an approx. $1 million lease (high-end Loop property).
Oops. Imagine if you were a lawyer consulted on this and you blew it. Call your carrier now. Bottom line? Don't take a notice clause for granted, because if litigation ensues this is were it can end up.

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