Fitness International LLC v. KB Salt Lake III LLC

Facts: A commercial landlord’s lease agreement entered into with a tenant contains a force majeure provision waiving rent in the event of a pandemic unless the default may be cured by the payment of money. The tenant does not pay rent due to government closure orders during the COVID-19 pandemic, though had available funds and continued in occupancy. The landlord seeks to evict the tenant in an unlawful detainer (UD) action based on a notice to pay rent or quit.

Claim: The tenant claims they are excused from paying rent during the months their business was closed to the public by government orders due to the pandemic since the closure order triggered the force majeure provision in the lease agreement.

Counterclaim: The landlord claims the tenant was obligated to pay rent and may be evicted since the tenant continued to occupy the premises and had the financial resources to pay rent which did not trigger the force majeure provision.

Holding: A California appeals court holds the landlord is entitled to enforce the UD action to evict the tenant since the tenant continued to occupy the premises and had the ability to pay the rent throughout the mandated closure period, which eliminated the use of the force majeure provision as a defense against paying rent. [Fitness International, LLC v. KB Salt Lake III., LLC. (2023) 95 CA5th 1032]

Fitness International LLC v. KB Salt Lake III LLC

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