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Strobl PLLC

Strobl PLLC

Business and Corporate Law Firm

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(248) 540-2300

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    • Henry J. Andries, Jr.

      Henry J. Andries, Jr.

      Member

      Phone: 248.205.2710

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Business Law, Commercial Contracts, Corporate Law, Healthcare Law, Labor & Employment, Litigation, Real Estate, Tax

      Experience

      Since 1995, Henry J. Andries, Jr. has engaged in private practice with a concentration in employment law, complex civil litigation...

    • Lynn M. Brimer

      Lynn M. Brimer

      Member

      Phone: 248.205.2772

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Banking & Financial Services, Bankruptcy & Creditor's Rights, Business Law, Commercial Contracts, Corporate Law, Litigation, Mergers & Acquisitions, Non-Profit Law, Real Estate, Tax

      Experience
      • Assist taxpayers with representation before the internal Revenue Service, the State of Michigan Department of Treasury and other taxing authorities...
    • Russell G. Carniak

      Russell G. Carniak

      Of Counsel

      Phone: 248-205-2721

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Business Law, Commercial Contracts, Corporate Law, Litigation

      Experience
      • Represents business interests in any dispute, accompanied with a commitment to understanding their businesses and the challenges they face in...
    • Jon P. Everly

      Jon P. Everly

      Managing Member

      Phone: 248.205.2759

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Business Law, Commercial Contracts, Corporate Law, Estate & Succession Planning, Non-Profit Law, Real Estate, Tax

      Experience
      • Advises closely held businesses and their owners in a broad range of legal matters, including formation, taxation, succession planning, and...
    • Michael L. Geller

      Michael L. Geller

      Member

      Phone: 248.205.2770

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Business Law, Commercial Contracts, Corporate Law, Healthcare Law, Labor & Employment, Litigation, Real Estate

      Experience
      • Advises and assists clients in the creation and structuring of their business entities.
      • Regularly counsels clients relative to employment issues that...
    • Jeffrey T. Goudie

      Jeffrey T. Goudie

      Associate

      Phone: 248-205-2767

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      Practice Areas

      Banking & Financial Services, Business Law, Commercial Contracts, Corporate Law, Real Estate

      Experience
      • Represents financial institutions in licensing matters, regulatory matters, and transactional matters
      • Provides vendor contract review for financial institutions
      • Litigates title issues and...
    • Evan H. Kaploe

      Evan H. Kaploe

      Senior Counsel

      Connect:

      Practice Areas

      Bankruptcy & Creditor's Rights, Business Law, Commercial Contracts, Estate & Succession Planning, Mergers & Acquisitions, Tax

      Experience
      • Assists clients involved in audit, appeals, and collection matters with the Internal Revenue Service or State taxing authorities.
      • Represents clients in...
    • Michael A. Kus

      Michael A. Kus

      Of Counsel

      Phone: 248-205-3090

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Banking & Financial Services, Business Law, Commercial Contracts, Corporate Law, Real Estate

      Experience
      • Advises financial institutions on compliance and regulatory laws and policies and procedures
      • Provides guidance and assistance to banks and thereby reducing...
    • Jay R. LaBarge

      Jay R. LaBarge

      Member

      Phone: 248.205.2778

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Banking & Financial Services, Business Law, Commercial Contracts, Corporate Law, Estate & Succession Planning, Healthcare Law, Mergers & Acquisitions, Non-Profit Law, Real Estate, Tax

      Experience
      • Advises clients on a full range of real estate matters, including drafting and negotiating purchase agreements and residential, commercial and...
    • Brian J. McCullough

      Brian J. McCullough

      Of Counsel

      Phone: 248.205.2715

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Business Law, Commercial Contracts, Corporate Law, Estate & Succession Planning, Healthcare Law, Real Estate

      Experience
      • All legal aspects pertaining to healthcare providers, including licensing, certification issues, survey and compliance issues, Medicare, Medicaid and other insurance-related...
    • Pamela S. Ritter

      Pamela S. Ritter

      Member

      Phone: 248.205.2765

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Banking & Financial Services, Bankruptcy & Creditor's Rights, Business Law, Commercial Contracts, Corporate Law, Litigation, Real Estate

      Experience
      • Counsel to lenders in a range of loan origination transactions, including commercial and industrial loan facilities, real estate and construction...
    • James A. Rocchio

      James A. Rocchio

      Of Counsel

      Phone: 248.205.2748

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Bankruptcy & Creditor's Rights, Business Law, Commercial Contracts, Corporate Law, Estate & Succession Planning, Mergers & Acquisitions, Tax

      Experience

      Mr. Rocchio has deep expertise in the area of taxation. Over the course of his legal career, he has counseled...

    • Nelson B. Stieper

      Nelson B. Stieper

      Of Counsel

      Phone: 248.205.2742

      Office: Bloomfield Hills, Michigan

      Connect:

      Practice Areas

      Estate & Succession Planning

      Experience
      • Performs probate and trust administration, revocable and irrevocable trusts, wills, special needs planning, gift planning, and asset protection
      • Advises on divorce,...
    • Thomas J. Strobl

      Thomas J. Strobl

      1942 – 2023

      Phone: 248.205.2713

      Office: Bloomfield Hills, Michigan

      Connect:

      Practice Areas

      Banking & Financial Services, Business Law, Commercial Contracts, Corporate Law, Labor & Employment, Mergers & Acquisitions, Real Estate, Tax

      Experience
      • Advises a broad spectrum of purchasers and sellers in merger and acquisition transactions involving primarily private companies.
      • Represents financial institutions and...
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Implications of COVID-19 on Commercial Leases in Michigan

August 14, 2020

The COVID-19 pandemic and resulting government prohibitions on individuals and businesses in Michigan have placed unprecedented pressure on commercial landlords to offer flexibility to struggling tenants. While commercial evictions were not expressly prohibited in the state of Michigan, many landlords, due to the lack of access to courts as well as concerns about the availability of replacement tenants, have chosen to take a more conservative approach in order to retain the tenants that wish to remain.

The best outcome for all parties will occur when the tenant and the landlord keep the lines of communication open with each other while reviewing options and negotiating temporary modifications to the terms of the current lease so that both parties can meet the needs of their unique situations.

Common Short-Term Lease Modifications due to COVID-19:

  • Short-term rent deferral: The postponement of rent for a specific period of time, generally 30-90 days, with specified terms for repayment.
  • Short-term rent abatement: Due to partial or total loss of income, a temporary adjustment of rent without a requirement for repayment.
  • Rent abatement plus lease extension: A short term period of rent-free or rent adjusted occupation tied to an extension of the current lease.
  • Lease termination settlement: A termination of the current lease for a negotiated penalty.

The ability of the landlord and tenant to reach a short term lease modification will likely depend on multiple considerations such as: willingness of both parties to negotiate, current lease terms, tenant’s current status and revised business plan, tenant’s access to business loans or grants, and the landlord’s ability to secure a new tenant.

If there is no room for negotiation or modification of the current lease terms, a tenant is generally obligated to pay rent during the entire term of the lease, absent a specific lease provision which grants the tenant a right of early termination.  However, there may be certain clauses in the lease or common law doctrines that tenants may invoke in order to attempt to  terminate the lease early or support non-payment of rent, such as:

  • Force Majeure: Many commercial leases incorporate a force majeure clause to excuse or delay a contractual service obligation, primarily by the landlord, if an unavoidable event prevents the completion of the service.  Most of the time, however, this clause does not include payment of rent by the tenant.  Also, as courts tend to view force majeure clauses quite literally, an attempt by a tenant to invoke force majeure to support non-payment of rent will likely fail unless the contract specifically cites an epidemic or pandemic.
  • Constructive Eviction:  This common law doctrine can be invoked when a landlord has, though negligence or intended action, deprived the tenant of his intended use of the premises. While the fault of a pandemic cannot be assigned to a landlord, the introduction of the pandemic to the specific site by the landlord or negligence on the part of the landlord to prevent its spread could potentially validate a tenant’s claim of constructive eviction.
  • Frustration of Purpose:  If a tenant is limited to a specific purpose per the lease and that purpose has been prohibited due to COVID-19, the tenant could attempt to invoke the frustration of purpose common law doctrine to argue that an unforeseen event has frustrated the reason they entered into the agreement in the first place, invalidating the lease.
  • Impossibility of Performance: Similar and often confused with frustration of purpose, the impossibility of performance common law doctrine could potentially be invoked by a tenant based on the premise the pandemic and subsequent restrictions, unforeseen at the signing of the contract, have rendered the performance specified by the lease objectively impossible.

Strobl is a team of experienced and trusted lawyers that can advise on all matters relating to commercial leases in Michigan, and in particular during this time of COVID-19.  For more information, visit Strobl online at www.stroblandsharp.com or on LinkedIn.

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At Strobl PLLC, our attorneys are committed to your team. We collaborate with clients to share our expertise and guide them to success.

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33 Bloomfield Hills Parkway, Suite 125
Bloomfield Hills, MI 48304

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