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GRSM Boston Team Defends $1.4 Million Verdict on Appeal

Gordon Rees Scully Mansukhani Boston Partner Stephen Orlando successfully defeated a defendant’s appeal of a $1.4 million verdict secured on behalf of GRSM’s client.

The appeal arose out of a 2022 trial, in which GRSM’s client sought to recover unpaid rent and possession of real property from a commercial tenant. The tenant claimed that the COVID-19 pandemic triggered the doctrines of “impossibility” and “frustration of purpose,” thereby justifying the tenant’s non-payment.

During trial, Orlando presented evidence that the tenant’s gross profits during the period of non-payment exceeded $1 million. He also presented evidence that, while the tenant cited COVID-19 as a basis for withholding rent, the tenant simultaneously collected rent from other properties owned by the tenant. Finally, Orlando presented evidence that the tenant’s corporate officers had internal discussions about whether they could cite COVID-19 as an excuse to renegotiate the parties’ lease terms.

After two hours of deliberation, the jury returned a verdict in favor of GRSM’s client. The trial judge also ordered the tenant to reimburse GRSM’s client’s legal fees. The total judgment exceeded $1.4 million.

The tenant filed a notice of appeal, seeking to challenge the verdict and the trial court’s rulings. GRSM filed a motion to dismiss the appeal, citing the tenant’s failure to comply with the rules of appellate procedure. The trial court agreed and dismissed the tenant’s initial appeal.

The tenant made a second attempt to appeal, arguing that the trial court should not have dismissed the tenant’s initial appeal. Based upon GRSM’s appellate brief and oral argument, the Appellate Division affirmed the trial court’s ruling.

By prevailing on appeal, Orlando was able to seek recovery of his client’s appellate fees from the tenant.

Learn more about GRSM’s Real Estate practice.