Avv. Silvio Marzari
Avv. Maria Gabriella Maggiora
Avv. Roberto Nicolini
Avv. Stefania Gioco
Avv. Stefania Brugnoli
Avv. Stefano Carrara
Avv. Alessio Albertini

26 ottobre - Commercial leases and COVID-19

Hi,
 
It’s Monday: let’s have again a little talk! This time the topic is about commercial leases after the lockdown due to the Coronavirus.
 
It is so important to be aware of the latest decisions by the Court of Cassation, in Italy: let’s find out together.
 
There has been much debate as to whether the lockdown and the subsequent forced closure of a business are a justification for non-payment of rent.
 
There have been some significant judicial decisions on this thorny issue.
 
Following the ruling the Court of Venice on 14th April 2020 and that of the Court of Rome last May, one of the most recent decisions on this topic has been taken again by the Court of Rome, which decided on 27th Aug. 2020 for a sharp reductionin commercial rent.
 
The reduction has been set to a larger amount for the months of lockdown, but the reduction also applies to a lesser extent for the following months and until March 2021.
This is not a final decision and it is not an automatic mechanism.
 
Similar decisions by the Court of Bologna should also be taken into account, supporting a trend in favour of commercial property tenants.
 
However, each situation must be assessed on a case-by-case basis also because, last July, the Court of Cassation intervened, indicating the renegotiation of the contractual relationship as the most appropriate instrument to rebalance commercial lease contracts in the light of the health emergency.
 
It is therefore risky to unilaterally stop paying the rent; prior to any action it is always important to seek qualified legal assistance.



 

 

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