The Gap and Banana Republic’s lease agreement at Park Royal mall contained provisions that allowed for reduced rent if the vacancy of the mall’s tenants fell below a certain threshold. When the landlord demolished portions of the mall for redevelopment, a dispute arose as to whether demolished premises were included in the vacancy calculation. The landlord sued the Gap and Banana Republic for payment of full rent during the period where many of the mall’s stores were demolished. The Gap and Banana Republic counterclaimed for overpayment of rent during those periods.
Simon Coval and Daniel Byma succeeded in dismissing the landlord’s claim and obtaining a judgment over $1.1 million for the Gap and Banana Republic’s overpayment of rent.
