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Law360 (May 26, 2020, 9:56 PM EDT ) The NBA hasn't paid rent for its store on Fifth Avenue in Manhattan for the past two months and now owes more than $1.2 million, according to a lawsuit filed Tuesday in New York federal court.
535-545 Fee LLC, which has leased the retail space to NBA Media Ventures LLC since November 2014, said the organization hasn't paid its $625,000 monthly rent for April or May, despite an "absolute and unconditional obligation" to pay under its lease agreement.
The NBA's lease set the annual rent at $7.5 million, according to the complaint.
Because the NBA didn't pay on time and also owes metered water charges, the landlord said the organization owes more than $1.2 million for the months of April and May.
The suit includes a claim of breach of contract and seeks payment of the unpaid rent, as well as damages and at least $20,000 in attorney fees.
This isn't the first company to be sued for not paying rent during the coronavirus pandemic.
In April, AMC Theaters was sued for $7.5 million after it refused to pay rent for some of its theaters in Florida, citing the impact of the pandemic.
Earlier this month, Ross Stores Inc. was sued for $5.5 million after it refused to pay rent for three of its stores in Florida because of the impact of the coronavirus on its business. The company's landlord said it "recognizes the challenges" posed by COVID-19 on businesses and tenants, but that Ross is obligated to continue paying rent.
The Gap Inc. was also hit this month with a suit claiming it owes $530,000 in rent for one of its stores on Sixth Avenue in Manhattan.
The J.Crew apparel chain filed for bankruptcy protection at the beginning of May, citing the coronavirus as well as years of financial struggles before the pandemic hit. And bankruptcy filings from other longtime retailers, like Neiman Marcus Group and J.C. Penney Co., followed soon after.
Representatives for the parties did not immediately respond to requests for comment Tuesday.
The landlord is represented by Efrem Z. Fischer of The Klein Law Group CRE PLLC.
Counsel information for the NBA was not immediately available.
The suit is 535-545 Fee LLC v. NBA Media Ventures LLC, case number 1:20-cv-04043, in U.S. District Court for the Southern District of New York.
--Additional reporting by Hannah Albarazi, Hailey Konnath, Rick Archer and Vince Sullivan. Editing by Brian Baresch.
For a reprint of this article, please contact reprints@law360.com.
