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    Categories: Biglaw

Crowell Law Firm’s $30 Million Lawsuit Over Pandemic Rent Allowed to Proceed, Judge Rules

In a significant development, a District of Columbia Superior Court judge has ruled that the lawsuit filed by law firm Crowell & Moring against its Washington, D.C., landlord can proceed. The lawsuit seeks to recover $30 million in rent refunds owed to the firm due to pandemic-related disruptions. Associate Judge Donald Walker Tunnage made the decision on Wednesday, denying The TREA 1001 Pennsylvania Avenue Trust’s attempt to dismiss the case.

Crowell & Moring, a Washington-founded law firm, initiated legal action against TREA Trust in March, citing local government orders that restricted the firm’s access to its headquarters from March 2020 to May 2021. The law firm argued that these restrictions constituted a “material interference” that warranted rent abatement, as specified in their lease agreement.

The landlord, TREA Trust, sought to dismiss the case, contending that Crowell & Moring‘s lease, originally signed in 1985 and subsequently amended multiple times, did not include any provision justifying the firm’s claim for rent abatement.

See also: Crowell Law Firm Relocates to New Washington D.C. Offices Amid Rent Dispute

During the hearing, Judge Tunnage and the lawyers representing Crowell & Moring and TREA Trust engaged in discussions regarding the interpretation of lease agreement terms such as “access” to the building and “essential” services. Judge Tunnage acknowledged the complexity of the case, stating, “I think this was not an easy case; if it were, we wouldn’t be here.”

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The judge concluded that Crowell & Moring’s allegations were sufficient for the case to proceed, emphasizing that the ultimate resolution of the matter would depend on the factual disputes between the law firm and the landlord, which could be addressed in subsequent stages of the legal process.

Both Crowell & Moring and TREA Trust were unavailable for immediate comment following the hearing. A spokesperson for Crowell & Moring declined to provide a statement, and representatives from TREA Trust did not respond to requests for comment.

In a separate development, Crowell & Moring announced earlier this month that it plans to relocate its 675 lawyers and staff in Washington to a new building by July 2026, coinciding with the expiration of its current lease at 1001 Pennsylvania Avenue. The law firm intends to downsize its office space and become the anchor tenant in the redevelopment of a building located at 600 Fifth St.

As the legal proceedings continue, this ruling marks a pivotal moment in Crowell & Moring‘s pursuit of $30 million in rent refunds. The case highlights the challenges faced by businesses during the pandemic and the intricacies involved in interpreting lease agreements in the context of unforeseen disruptions. Observers will be closely monitoring the developments as Crowell & Moring seeks to secure its rightful compensation while navigating the legal landscape.

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Rachel E: