Schulte Roth & Zabel has filed suit against its New York landlord, seeking at least $10 million, becoming the latest firm to dispute its office rent obligations during the pandemic, the American Lawyer reported. Schulte is seeking rent abatement from its landlord at 919 Third Ave., an SL Green property in Midtown. The case is similar to Simpson Thacher & Bartlett and Jenner & Block’s litigation this year against their landlords. The law firm disputes have continued to percolate in the legal industry, as the pandemic and shutdown orders have forced firms to operate remotely. But the landlord’s attorney at Fried, Frank, Harris, Shriver & Jacobson strongly disputes Schulte’s argument — along with the broader argument made by other firms. “While this lawsuit is legally without merit, the attempt by Schulte Roth & Zabel and other well-heeled, white-shoe firms to take advantage of the pandemic and not live up to their financial commitments at a time when the vast majority of New Yorkers continue to meet their obligations poses a very serious threat to New York City and its economy,” said Janice Mac Avoy, a Fried Frank partner. Schulte, represented by Foley & Lardner, is suing Metropolitan 919 3rd Avenue LLC, as the successor to 919 Third Ave. Associates in Manhattan Supreme Court. Schulte said it has had an office at 919 Third Ave. since 2000. Schulte’s suit cites sections of the lease that point to “unavoidable delays” in occupying the space. Schulte argues the “lease is clear” that where the firm has been forced to vacate its offices “by laws or government mandates” in response to a national emergency for more than 15 business days, the firm is entitled to rent abatement while Schulte cannot occupy its offices “for the ordinary conduct of its business.”
