Creating certainty in the inherent uncertainty of the future is the name of the game when it comes to drafting commercial leases. When courts overrule provisions that the parties to the lease have agreed upon, however, that supposed certainty goes out the window. This fact pattern played out recently in Epochal Enterprises, Inc. v. LF Encinitas Properties, LLC (4th Dist., Case No. D079905) (“Epochal”), when the California Court of Appeal ruled that a limitation of liability clause in a lease that purported to release the landlord from liability for failing to disclose asbestos was against public policy and not enforceable.Continue Reading New Court Ruling Pokes Holes in Contractual Limitation of Liability Language in Commercial Leases

New York City’s rent-related laws have once again survived judicial scrutiny, and evaded Supreme Court review. In 74 Pinehurst LLC v. New York, a group of New York City landlords (“Petitioners”) filed suit in the District Court for the Eastern District of New York against the City and State of New York, the State Division of Housing and Community Renewal, New York City’s Rent Guidelines Board, and multiple state and New York City officials (“Respondents”), seeking a declaration that New York City’s Rent Stabilization Law, as amended in 2019 (“RSL”), violates the Fifth and Fourteenth Amendments of the United States Constitution. Respondents moved to dismiss, which the Eastern District Court granted. On appeal, the Court of Appeals for the Second Circuit affirmed the motion to dismiss, and on February 20, 2024, the Supreme Court denied Petitioners’ petition for certiorari, declining to review the RSL.Continue Reading SCOTUS Declines to Review New York City’s Rent Stabilization Law

The California State Legislature is considering Assembly Bill (AB) 2216, a measure introduced by Assemblymember Matt Haney, that would force landlords to permit pets in residential rental properties. Specifically, the proposed legislation restricts a landlord from barring a tenant from owning or keeping a common household pet without valid justification. The bill also prevents landlords from charging tenants extra rent or security deposits for owning or keeping a common household pet. However, these restrictions do not apply to rental agreements signed before January 1, 2025.Continue Reading Unleashing AB 2216: Will Fido Have a Leg Up on Landlords?