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CGS3 Attorney Quoted in Article re Landlord-Tenant Dispute
Steven Otto quoted in Daily Journal
A multi-million-dollar biosciences company and its CEO are being sued by a landlord who claims they abandoned a lease agreement just seven months into an eight-year, $11.8 million contract.
Our partner, Steven Otto, who specializes in major real estate transactions but is not connected to the case, was quoted in a recent article about the lawsuit in the Daily Journal, calling it a “cautionary tale for both landlords and tenants. For landlords where multiple entities are associated with the tenant, in addition to conducting a thorough review of the actual tenant, the landlord would be well served to obtain guarantees from the entities or owners related to the tenant to support the creditworthiness of the tenant. For tenants, observing the formalities of separate tenant related entities – e.g. not comingling funds – is critical to supporting your position that the ‘alter ego doctrine’ should not be used to pierce the corporate veil and create joint and several liability between the related tenant entities.”
The full article can be read here (Daily Journal, subscriber only).