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Law360 (May 26, 2020, 1:30 PM EDT ) Jenner & Block LLP is in a fight with its Chicago landlord over how much in rent the firm must pay while its office space goes largely unused because of the coronavirus pandemic, with the landlord asking for more than $3.7 million.
Landlord Hart 353 North Clark LLC, an affiliate of global real estate investment management firm Heitman LLC, said in a May 20 lawsuit in Cook County Circuit Court that Jenner & Block didn't pay its rent for April and May and owes $3,726,415.74, plus late fees and interest. Jenner & Block leases approximately 416,297 square feet of office space in the downtown Chicago tower at 353 N. Clark St., the suit says.
But the firm says it paid what its lease requires it to pay.
"Our Chicago office lease includes a negotiated provision for rent abatement in the event of a situation, like the global pandemic, that renders the firm unable to use and occupy the space for its intended purpose. The firm has invoked that provision," Randy Mehrberg, co-managing partner of Jenner & Block, said in a statement to Law360 on Tuesday.
"We have credited the landlord for the limited space we have been able to use for its intended purpose," Mehrberg said. "Jenner & Block has a very strong financial position; this dispute is exclusively about the enforcement of that provision in the lease."
The complaint alleges the firm didn't pay the delinquent rent within five days of receiving written notice of nonpayment, constituting a default of the lease agreement.
The landlord claims the firm also owes roughly $68,000 in "unpaid reconciliations" from 2018 and about $92,000 in unpaid cafe charges.
An attorney for the landlord, John M. Riccione of Taft Stettinius & Hollister LLP, told Law360 on Tuesday that amid a global pandemic, Heitman is "committed to a proactive engagement with their partners and tenants to address any challenges constructively that have arisen from this crisis."
The firm's Chicago location is Jenner & Block's first and largest office, where approximately 330 of its attorneys are based.
Hart 353 North Clark LLC is represented by John M. Riccione, William J. Serritella Jr. and Brianna M. Skelly of Taft Stettinius & Hollister LLP.
Counsel information for Jenner & Block LLP could not be immediately determined.
The case is Hart 353 North Clark LLC v. Jenner & Block LLP, case number 2020L005476, in the Circuit Court of Cook County.
--Editing by Orlando Lorenzo.
Update: This article has been updated with more details on the dispute and comment from Jenner & Block and the landlord's counsel.
For a reprint of this article, please contact reprints@law360.com.
