Don’t Believe What I Told You Clauses

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Here’s a story with a few different lessons. One aspect of it won’t be of great utility to our readers, so we’ll get it out of the way right now. The tenant in this story appeared to sign a lease without counsel and without fully reading it. We don’t think that aspect casts any shade on the lessons we’ll be covering, but keep the tenant’s approach in mind as you read the rest of today’s blog posting.

The owner of a successful chain of quick-service, ethnic restaurants developed a new concept – a mall restaurant that would sell gourmet hot dogs. W.C. Fields might have called those “Gourmet Tube Steaks,” but that’s for another industry’s blogs. He honed in on a large mall, one that only had three remaining spaces in what appeared to be its food court (though the court never explicitly identified it as such). One of the existing tenants in that food court was a well-known, national, premium hamburger quick-service restaurant. No, it wasn’t the one with the golden arches. Although that hamburger restaurant sold hot dogs, they were only a sideline. So, this was of no concern to the owner’s gourmet hot dog plans. [Read more…]

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Eight More Issues Raised By An Agreement’s Attorneys Fee Provision

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Attorneys fee clauses – where did we leave off last week? Well, we had a list of issues and only explored the first two. Here’s the list. If you want to see what we’ve written thus far, click HERE.

To make this page “look good” and match the look of prior blog postings, we’ve got to do some “fill-in” text. So, this is a good opportunity to thank our large audience of readers, many of them fervent followers of Ruminations. With today’s posting (our 151st to date), we’ve broken through the “150” barrier. All of our prior posting are available and our crude search feature might get you to explore some topics you never thought could be topics. So, here’s a big THANK YOU, and  the end of our segue to the list of issues we promised in the paragraph directly above. Keep your comments and your ideas for future postings coming this way.

And now, here’s that list: [Read more…]

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Attorneys Fees Provisions Are Way More Complicated Than You Think – Here Are Some Reasons Why

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Attributed to George Bernard Shaw is this (perhaps variant) observation: “The English and the Americans are two peoples divided by a common language.” So, there should be no surprise to experienced readers that, when it comes to the right to collect attorneys fees, there is the “English Rule” and there is the “American Rule.”

Those two rules simply reflect different philosophies or “public policies.” Under the English Rule, losers pay the winner’s attorneys fee under the policy that, if your claim could not be sustained, the party you claimed against should be returned to where it stood before the suit was filed. The American Rule, fully cognizant of the “fairness” goal of the rule from across the ocean, says that, absent fraud on the party of the one charged or a [Read more…]

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What’s The Story Behind Indemnification Clauses?

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In our last posting, we described the tort (or common law) exposure that a landlord might have. We did that because most readers understand that when a party breaches an agreement, it may be liable to the other parties. On the other hand, many readers only have a sketchy idea about the kinds of liability a party can have “just by being out there.”

This time, Ruminations will muse about indemnification, waiver, and release provisions in our leases, sales contracts, and other agreements. [Read more…]

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A Lesson in Absurdity.

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Well, I’ve written more words about the Office Depot case than did the Georgia Court of Appeals. What case? – read the posts of July 25 and 28.

So, this time, I’ll start with the Court’s words themselves: “At base, Office Depot argues that any breach violation – no matter how wrong or far fetched – triggers the termination right.”

What did the Lease say? This is what it said: [Read more…]

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