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Contracts Keyed to Farnsworth
In re Hitz Restaurant Group
Citation:
616 B.R. 374 (2020)Facts
Hitz Restaurant Group operated a restaurant in Chicago under a lease with Kass Management Services. In March 2020, Illinois Governor J.B. Pritzker issued Executive Order 2020-07, which prohibited on-premises consumption of food and beverages in restaurants to combat the spread of COVID-19. While the order allowed restaurants to continue takeout, curbside pickup, and delivery services, Hitz’s business was primarily dine-in service. After the executive order, Hitz failed to pay rent for April, May, and June 2020. The restaurant filed for bankruptcy protection, and the landlord sought to enforce payment of post-petition rent. Hitz invoked the lease’s force majeure clause, arguing that the governmental restrictions triggered the clause and partially excused its rent obligations.
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