Detroit's Silverdome Owners File Lawsuit Seeking Unpaid Rent
Triple Properties Inc., of Toronto, has filed a lawsuit against the Palace Entertainment Group and three other companies for unpaid rent, totaling approximately $750,000. Palace is a promotion company which planned to use the Silverdome as a venue for a concert back in June. However, the stage collapsed within the Silverdome and the concert was forced to cancel.
The issue in this case could boil down to what the terms of the contract or lease agreement dictate in the event the concert is cancelled. The reason for the cancellation is very important. Obviosuly, Triple Properties believes they are in compliance with the contract terms and that the collapse of the stage is Palace's problem. If this is the case, you can't blame Triple Properties for wanting to recover the unpaid rent. They may have passed on other paying opportunities to lease the property during that time period.
Most leasing agreements and contracts will address event cancellation because of "force majeure" circumstances, otherwise known as "acts of God." If a "force majeure" event is the reason for the cancellation or delay, in most situations, both parties will be put in the position as if the contract never existed.
The Silverdome was purchased in 2009 for just under $600,000 and used to be home to the Detroit Lions. To learn more about this, visit Silverdome Owners seek $750k in unpaid rent.
A business attorney will be able to provide sound guidance on what terms to include in your contract or lease agreement. Contact Wood, Atter, & Wolf P.A. for legal assistance in understanding your lease agreement or in developing a lease agreement to meet your legal needs.
