AGW Sono Partners, LLC v. Downtown Soho, LLC

Summary

The court held that pandemic-related executive orders did not excuse the restaurant tenant's lease obligations under either impossibility or frustration of purpose because restaurant use remained legally possible through takeout and outdoor dining, and the lease allocated regulatory-compliance risks to the tenant. The court nevertheless reversed the damages award because the trial court improperly placed on the landlord the burden of proving reasonable mitigation and remanded for a new damages hearing. The judgment was affirmed in all other respects.