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Gallery Sues Landlord, Claiming Covid-19 Shutdown Voids Lease Gallery Sues Landlord, Claiming Covid-19 Shutdown Voids Lease
(8 days later)
In early March, the Venus Over Manhattan gallery on the Upper East Side mounted an exhibition of paintings, drawings and wall reliefs by the artist Roy De Forest, the biggest presentation of his work in New York City since 1975.In early March, the Venus Over Manhattan gallery on the Upper East Side mounted an exhibition of paintings, drawings and wall reliefs by the artist Roy De Forest, the biggest presentation of his work in New York City since 1975.
But the show’s prospects may have been limited when Gov. Andrew M. Cuomo of New York banned most gatherings and ordered nonessential businesses to close by March 22 as part of an effort to limit the spread of the coronavirus.But the show’s prospects may have been limited when Gov. Andrew M. Cuomo of New York banned most gatherings and ordered nonessential businesses to close by March 22 as part of an effort to limit the spread of the coronavirus.
Now the gallery is suing its landlord, arguing that the governor’s actions provide a basis to end its lease, which it says started in 2011 at $54,000 per month, and recover its deposit of $365,000.Now the gallery is suing its landlord, arguing that the governor’s actions provide a basis to end its lease, which it says started in 2011 at $54,000 per month, and recover its deposit of $365,000.
“As a result of the Covid-19 pandemic, Governor Cuomo issued a number of executive orders, which by March 29, 2020, completely frustrated the very purpose of the lease,” a lawyer for the gallery wrote in a complaint filed last week in Federal District Court in Manhattan, adding that the gallery therefore “considers the lease terminated.”“As a result of the Covid-19 pandemic, Governor Cuomo issued a number of executive orders, which by March 29, 2020, completely frustrated the very purpose of the lease,” a lawyer for the gallery wrote in a complaint filed last week in Federal District Court in Manhattan, adding that the gallery therefore “considers the lease terminated.”
The dispute is between companies run by two prominent art collectors, both with significant business experience and neither averse to attention.The dispute is between companies run by two prominent art collectors, both with significant business experience and neither averse to attention.
The gallery’s owner, Adam Lindemann, who once ran an investment firm, briefly set an auction record for Jean-Michel Basquiat in 2016 when he sold a painting by the artist at Christie’s for $57.3 million.The gallery’s owner, Adam Lindemann, who once ran an investment firm, briefly set an auction record for Jean-Michel Basquiat in 2016 when he sold a painting by the artist at Christie’s for $57.3 million.
The gallery’s Madison Avenue building is listed as a property of the real estate company run, with a partner, by Aby Rosen. He has displayed several Picassos in his Manhattan home and, in 2014, riled some neighbors by erecting on his Long Island estate a 33-foot, painted bronze sculpture of a naked pregnant woman with an exposed fetus.The gallery’s Madison Avenue building is listed as a property of the real estate company run, with a partner, by Aby Rosen. He has displayed several Picassos in his Manhattan home and, in 2014, riled some neighbors by erecting on his Long Island estate a 33-foot, painted bronze sculpture of a naked pregnant woman with an exposed fetus.
Venus Over Manhattan’s lawyer, Errol Margolin, suggested to Crain’s New York Business, which first reported news of the lawsuit, that the gallery was concerned about its inability to hold the kind of large, buzz-generating openings that entice art buyers. “When you have a gallery opening, you have 500 people,” he was reported to say. “If you have social distancing, how can you have 500 people in the future?”Venus Over Manhattan’s lawyer, Errol Margolin, suggested to Crain’s New York Business, which first reported news of the lawsuit, that the gallery was concerned about its inability to hold the kind of large, buzz-generating openings that entice art buyers. “When you have a gallery opening, you have 500 people,” he was reported to say. “If you have social distancing, how can you have 500 people in the future?”
Mr. Margolin said by email that the lawsuit involved “a dispute between a commercial tenant and a landlord” about whether a lease default had taken place. A representative for Mr. Rosen’s company, RFR Holding LLC, declined to speak about the suit.Mr. Margolin said by email that the lawsuit involved “a dispute between a commercial tenant and a landlord” about whether a lease default had taken place. A representative for Mr. Rosen’s company, RFR Holding LLC, declined to speak about the suit.
The complaint filed by the gallery says that it considers the lease to have been terminated as of April 1. On March 25, it added, the gallery informed the landlord that it was vacating the premises on or about July 1 and demanded the return of the $365,000 deposit.The complaint filed by the gallery says that it considers the lease to have been terminated as of April 1. On March 25, it added, the gallery informed the landlord that it was vacating the premises on or about July 1 and demanded the return of the $365,000 deposit.
On April 8, the complaint states, the landlord declared a default under the lease and on April 23 seized the deposit.On April 8, the complaint states, the landlord declared a default under the lease and on April 23 seized the deposit.
The gallery claims it is entitled to end the lease based on two arcane legal doctrines: “frustration of purpose,” described in the complaint as when an unforeseen event destroys the reason for a contract; and “impossibility of performance,” which the complaint says allows performance of a contract to be excused if governmental activities render that performance impossible.The gallery claims it is entitled to end the lease based on two arcane legal doctrines: “frustration of purpose,” described in the complaint as when an unforeseen event destroys the reason for a contract; and “impossibility of performance,” which the complaint says allows performance of a contract to be excused if governmental activities render that performance impossible.
Updated June 24, 2020
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The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
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If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
Joshua Stein, a commercial real estate lawyer not involved in the lawsuit, said that frustration of purpose is one of several doctrines businesses have considered asserting during the pandemic as a basis to withhold rent or walk away from a lease.Joshua Stein, a commercial real estate lawyer not involved in the lawsuit, said that frustration of purpose is one of several doctrines businesses have considered asserting during the pandemic as a basis to withhold rent or walk away from a lease.
But, he added, it could be difficult to convince a judge that frustration of purpose or impossibility arguments apply in the case of a citywide shutdown caused by a pandemic that at some point will presumably pass.But, he added, it could be difficult to convince a judge that frustration of purpose or impossibility arguments apply in the case of a citywide shutdown caused by a pandemic that at some point will presumably pass.
“The problem with claiming ‘frustration of purpose’ for a commercial lease is the subject matter of the lease does still exist,” Mr. Stein wrote in an email message, adding: “The fact that tenant can’t use the space for the intended purpose doesn’t make anything in the lease impossible.”“The problem with claiming ‘frustration of purpose’ for a commercial lease is the subject matter of the lease does still exist,” Mr. Stein wrote in an email message, adding: “The fact that tenant can’t use the space for the intended purpose doesn’t make anything in the lease impossible.”
As the coronavirus has spread, galleries across New York City and elsewhere have had to accept that celebratory openings, where artists, critics and potential buyers sip wine and gaze at artworks, are, at least for now, a thing of the past.As the coronavirus has spread, galleries across New York City and elsewhere have had to accept that celebratory openings, where artists, critics and potential buyers sip wine and gaze at artworks, are, at least for now, a thing of the past.
Over the last few months, galleries have joined museums and art fairs in exploring creative ways to exhibit works online. The mega-dealer David Zwirner has built out space on its website to host shows by a dozen smaller galleries in New York and London. In Los Angeles, several galleries have organized and created a shared marketing website.Over the last few months, galleries have joined museums and art fairs in exploring creative ways to exhibit works online. The mega-dealer David Zwirner has built out space on its website to host shows by a dozen smaller galleries in New York and London. In Los Angeles, several galleries have organized and created a shared marketing website.
Venus Over Manhattan appeared to be using virtual displays as adroitly as any other gallery. Last month, The New York Times critic Roberta Smith reviewed the show of Mr. De Forest’s work favorably, saying it “booms forth” from the gallery’s website. The complaint does not specify how the gallery’s closure has affected its sales.Venus Over Manhattan appeared to be using virtual displays as adroitly as any other gallery. Last month, The New York Times critic Roberta Smith reviewed the show of Mr. De Forest’s work favorably, saying it “booms forth” from the gallery’s website. The complaint does not specify how the gallery’s closure has affected its sales.
Still, Venus Over Manhattan’s lawyer appeared to suggest that there would be little reason to maintain a gallery if a packed opening was not possible. The gallery’s lease provided for use of the premises for the display and sale of fine art, Mr. Margolin wrote in the complaint.Still, Venus Over Manhattan’s lawyer appeared to suggest that there would be little reason to maintain a gallery if a packed opening was not possible. The gallery’s lease provided for use of the premises for the display and sale of fine art, Mr. Margolin wrote in the complaint.
But, he added, “such use contemplated large groups of customers viewing the exhibits and attending exhibit openings.”But, he added, “such use contemplated large groups of customers viewing the exhibits and attending exhibit openings.”