Tiernan & Nelson: Commercial tenancies, COVID-19 and ‘frustration of purpose’

In response to the COVID-19 pandemic, Gov. Larry Hogan signed a statewide order shutting down all “nonessential businesses” on March 23, 2020. If not designated an essential business by the order, a business had either severely restricted operations or was unable to operate altogether. While affected by the order, many businesses have looked to their leases to determine what contractual rights are available to tenants to avoid paying rent while unable to operate at full capacity.