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Supreme Court of Minnesota
Minnesota Supreme Court Clarifies Lease Defense Doctrine in COVID Case
The Minnesota Supreme Court affirmed a lower court ruling in favor of landlord City Center Ventures, LLC against tenant Fitness International, LLC, establishing that the temporary frustration of purpose doctrine can suspend but not discharge commercial lease obligations. The decision provides important guidance on tenant defenses during business disruptions.
•Minnesota Supreme Court recognized temporary frustration of purpose doctrine as valid under state contract law
•Court ruled tenant lease obligations are suspended, not discharged, during periods of temporary frustration
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