Facts: UPG Property Group Inc. sued Access China Tours, Inc. for breach of a commercial lease agreement due to unpaid rent after vacating the premises, attributed to financial struggles stemming from the COVID-19 pandemic.
Issue: The main legal issue revolved around whether the pandemic and resulting government restrictions could excuse Access China Tours, Inc. from its lease obligations under the doctrines of force majeure or frustration of purpose.
Court's Ruling: The court found that the defenses of force majeure and frustration of purpose did not apply, holding Access China Tours, Inc. liable for breach of the lease agreement.
Damages/Costs Awarded: Damages were awarded to UPG Property Group Inc. for unpaid rent, additional costs associated with re-leasing the property, interest on unpaid rent, and legal costs. The court agreed that the unpaid rent, the difference in rent under the new lease, and the commission paid to find a new tenant were payable by the defendants, totaling $92,779.60.
