Two New Jersey Court Decisions May Influence How Risks Are Handled In Commercial LeasesOn July 13, 2020 by Schnader in Real Estate
Gary N. Smith published a client alert, “Two New Jersey Court Decisions May Influence How Risks Are Handled In Commercial Leases.”
Recent New Jersey Appellate Court decisions – Shields v. Ramslee Motors and Underhill v. Borough of Caldwell – have created new considerations for landlords and tenants entering into commercial leases in New Jersey. In addition to the specific indemnification language required under the Supreme Court’s previous ruling in Azurak v. Corp. Prop. Inv’rs, the new case law permits landlords to delegate the maintenance obligations of their properties to their tenants. Based on these rulings, landlords and tenants may want to re-evaluate their risk assessments for property maintenance when negotiating commercial leases.