Skip Navigation

6310 Hillside Court
Suite 160
Columbia, MD 21046

P. 410-290-0707

 

 

Baltimore, MD 

P. 410-962-1199

Commercial lease termination

Commercial Lease Renewal Deadlines: Strict Compliance


If there was any question, tenants looking to renew commercial leases

should pay close attention to deadlines. 

On January 31, 2006, Maryland's Court of Special

Appeals in Chesapeake Bank of Maryland v. Munro Muffler/Brake, Inc. issued an opinion 

holding that a tenant who admittedly failed to give timely notice of an

option for lease extension lost the option.  The tenant, Munro, was required

under the unambiguous terms of the lease to give notice at least ninety days

prior to the end of the lease.  Unfortunately, due to Munro's admitted error, notice

was not provided until just over sixty days prior to the end of the

lease term.  The landlord, Chesapeake Bank, refused the extension.  The Court of 

Special Appeals noted the clear terms agreed to by the parties.

The Court rejected arguments that equity (basic principles of

fairness) or a cure provision of the lease helped the tenant.   Munro argued that the

default provisions of the lease allowed it to cure within twenty days.  That twenty day

time period would, it argued, allow the option notice to be made timely.  The Court,

rejecting the argument, noted that, "if failure to satisfy the notice

provision is a default that can be cured, the provision [regarding notice renewal by 

an agreed deadline] itself is rendered meaningless."   Opinion at p. 32.  


BTLG Attorneys At Law

Talk to a lawyer

Bold labels are required.

News from BTLG:

Expansion of Definition of Race to Include Hairstyles
Effective October 1, 2020, the definition of race under Maryland discrimination laws has been expanded to also include hair styles
Maryland Economic Stabilization Act (“Mini Warn Law”)
Effective October 1, 2020, Maryland employers who employee 50 or more individuals are required to comply with updated mandatory provisions of the Maryland Economic Stabilization Act (“Mini Warn Law”)
Insurance Coverages for Businesses: Will your insurance cover you for a coronavirus-related loss?
Some insurance policies may allow for claims on coronavirus related losses
Maryland closes restaurants, gyms and theaters
Maryland Governor Hogan issued an Executive Order with further direct impact to Maryland business
More BTLG News