Biglaw Firm Late On Rent -- To The Tune Of $3.7 Million -- According To Landlord
The firm insists it is in fine financial shape.
You don’t always think of Biglaw firms as “relatable,” but the coronavirus is weird like that. A Biglaw firm finds itself the defendant in a lawsuit over an issue a lot of folks feel right now — late rent.
According to the lawsuit, filed in Illinois, the Biglaw firm of Jenner & Block is behind on its rent for the firm’s Chicago office. Landlord Hart 353 North Clark LLC, affiliate of global real estate investment management firm Heitman LLC, said in a lawsuit filed May 20th in Cook County Circuit Court the firm owes $3,726,415.74, plus late fees and interest, for its 416,000+ square feet of office space.
But not so fast, the firm contends their lease provides an out. Randy Mehrberg, co-managing partner, told Law360 that the firm’s partners are availing themselves of a provision in their lease agreement that provides rent abatement if the space cannot be used as intended. And he assures everyone this rent dispute is not a harbinger of financial troubles for the firm:
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“Our Chicago office lease includes a negotiated provision for rent abatement in the event of a situation, like the global pandemic, that renders the firm unable to use and occupy the space for its intended purpose. The firm has invoked that provision,” Randy Mehrberg, co-managing partner of Jenner & Block, said in a statement to Law360 on Tuesday.
“We have credited the landlord for the limited space we have been able to use for its intended purpose,” Mehrberg said. “Jenner & Block has a very strong financial position; this dispute is exclusively about the enforcement of that provision in the lease.”
In 2019, the firm made $448,005,000 in gross revenue, making it 87 on the Am Law 100 ranking.
John M. Riccione of Taft Stettinius & Hollister LLP represents the landlord. He said the landlord is “committed to a proactive engagement with their partners and tenants to address any challenges constructively that have arisen from this crisis.”
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Kathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).
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