TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Tuesday, August 14, 2018

Judge Finds Charlotte Law School Liable For Unpaid Rent, Rejects Argument That Accreditation Woes Excused Nonpayment

Charlotte Logo (2016)Law360, Defunct NC For-Profit Law School Must Still Honor Lease:

A North Carolina state judge on Friday found InfiniLaw Corp.'s Charlotte School of Law in breach of its office building lease, rejecting the for-profit institution’s argument that it should be forgiven the unpaid rent since last October because that’s when government agencies crippled its ability to function. ...

The “doctrine of commercial frustration,” which the school relied upon as its main argument, is based upon the basic idea that they legally cannot be held to the lease because of the unforeseen circumstances that arose after its signing, according to the opinion.

What’s more, the language of the lease specifically says that if for some reason the school were to lose its license to operate, it cannot be used as an excuse to be let off the hook for rent, the judge noted.


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