Lease Canceled Due to Property's Complete Destruction

December 1, 2007

Facts: The tenant of a storage building that was destroyed by Hurricane Katrina disagreed over whether the destruction effectively canceled the lease. The tenant asked the court to formally declare that the lease was not canceled.

Decision: The Southern District of Mississippi court decided that the destruction caused by Hurricane Katrina did cancel the lease.

Facts: The tenant of a storage building that was destroyed by Hurricane Katrina disagreed over whether the destruction effectively canceled the lease. The tenant asked the court to formally declare that the lease was not canceled.

Decision: The Southern District of Mississippi court decided that the destruction caused by Hurricane Katrina did cancel the lease.

Reasoning: In arriving at its decision, the court examined a lease clause stating that the lease should be canceled if the entire premises could not be repaired within 180 days. The court held that the tenant's assertion that the building—which was completely destroyed—could have been repaired within 180 days was unreasonable.

  • Bay Point High and Dry, Inc. v Brennan, October 2007.

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