Following a three-day trial in Worcester District Court, Michael Marino and Stephen Orlando obtained a $1.41 million judgment on behalf of their client, a commercial property owner. The judgment included reimbursement of the client’s legal fees and expenses.
The trial involved the property owner’s dispute with a commercial tenant. In March 2020, the tenant refused to pay the rent owed under his lease agreement. The tenant asserted that the economic impact of COVID-19 excused his contractual obligations, despite his continued occupation of the property. The tenant asserted two legal defenses: an “Act of God” clause in the parties’ lease agreement and the “Frustration of Purpose” doctrine.
During litigation, the firm's team secured a court order requiring the tenant to pay a portion of the rent while the parties awaited trial. Gordon & Rees filed a motion for summary judgment, successfully eliminating the tenant’s “Act of God” defense.
Mr. Orlando presented evidence at trial that the tenant’s gross profits in 2020 exceeded $1 million. He also presented evidence that the tenant received a $300,000 PPP loan, which the federal government subsequently excused. Finally, Mr. Orlando elicited evidence that the tenant was storing the rent money owed, in a separate bank account, in an attempt to leverage a renegotiated lease with the owner.
Following a brief deliberation, the jury found that the economic hardship of COVID-19 did not excuse the tenant’s obligation to pay rent. Accordingly, the Court awarded all unpaid rent to the owner and reimbursed the owner’s reasonable fees and expenses.
In total, Mr. Marino and Mr. Orlando obtained a judgment of $1,416,311 on behalf of their client.