Sheehey attorney Renee Mobbs recently won a victory in the Vermont Supreme Court in Pearl Street Partners v. Backstage, successfully arguing in both the trial court and the Supreme Court on appeal that a landlord has the right to terminate a commercial lease and evict the tenant if the tenant’s insurance coverage does not strictly comply with the requirements of the lease. Both the trial court and the Supreme Court agreed with Attorney Mobbs’ argument that insurance coverage is an important component of commercial leases, and that the tenant’s failure to obtain the necessary insurance constitutes a material breach, tantamount to playing financial Russian roulette. The courts declined to entertain the tenant’s equitable arguments, and instead enforced the terms of the parties’ lease according to its terms.
To read the decision, click here.