Say it Ain't So! Tortious Interference with a Sublease By a Master Landlord
A South Carolina appellate court recently affirmed a trial court's decision that a landlord had tortiously interfered with a sublease by terminating the master lease after a fire damaged the subject building and such landlord was liable to the subtenant for punitive damages.
September 27, 2021 at 11:04 AM
10 minute read
Recently, in Sea Island Food Grp., LLC v. Yaschik Dev. Co., Inc., a South Carolina appellate court affirmed a trial court's decision that: 1) a landlord had tortiously interfered with a sublease by terminating the master lease after a fire damaged the subject building; and 2) such landlord was liable to the subtenant for punitive damages. See, 433 S.C. 278, 857 S.E.2d 902 (Ct. App. 2021), reh'g denied (May 12, 2021).
In April 2013, a fire caused extensive damage to the building's second floor and roof, but less damage to other parts of the building. After such damage, the master tenant began repair and restoration work on the building. In May, 2013 the landlord entered into negotiations to sell the building to a neighboring property owner. Though the lease required the master tenant to carry $1 million in insurance, the master tenant advised the landlord in August, 2013 that the total cost of repairs could exceed $2.3 million. In September, the master tenant requested that the landlord approve the structural plans for the building's repair. The following week, the landlord notified the master tenant of its decision to terminate the lease. The lease provided for automatic termination in the event the premises were totally destroyed. The full lease provision reads as follows:
If premises are totally destroyed by fire or other casualty, this lease shall terminate as of the date of such destruction and rental shall be accounted for as between Landlord and Tenant as of that date. If premises are damaged but not wholly destroyed by fire or other casualty, rent shall abate in such proportion as use of premises has been lost to the Tenant. Landlord shall restore premises to substantially the same condition as prior to damage as speedily as practicable, whereupon full rental shall commence.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllState Appellate Court Orders New Trial After Judge Denies Rescheduling, Despite Counsel's Health Emergency
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models
Law Firms Mentioned
Trending Stories
- 1States Accuse Trump of Thwarting Court's Funding Restoration Order
- 2Microsoft Becomes Latest Tech Company to Face Claims of Stealing Marketing Commissions From Influencers
- 3Coral Gables Attorney Busted for Stalking Lawyer
- 4Trump's DOJ Delays Releasing Jan. 6 FBI Agents List Under Consent Order
- 5Securities Report Says That 2024 Settlements Passed a Total of $5.2B
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250