Florida landlords are suing AMC Theatres for not paying rent. Some owners of a shopping mall filed the suit in Miami federal court according to Variety. Palm Springs Mile Associates, Ltd. heard the claims from AMC last month about paying rent across the country, but still wants that $52,153.87 from the monthly rent for AMC Hialeah 12. Their suit argues that the company’s breach of contract triggers a requirement for immediate payment. If this weren’t bizarre enough, the suit is also seeking damages in excess of $7.5 million. It was a wild scene last month when AMC told it’s landlords that it wouldn’t be paying rent, so to see a small group rise up like this isn’t exactly surprising. But, the overall dollar amount fits the bill entirely.
“The Landlord recognizes the challenges posed by COVID-19, including on its own business,” the lawsuit says. “Under the express terms and provisions of the Lease and Guaranty, however, Defendant is obligated to pay Rent and that obligation is not excused.”
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“Force majeure” is the concept that a lot of businesses are depending on for their arguments right now, but it seems this shopping mall doesn’t see it that way. They state in the suit that the pandemic would not trigger a provision in the lease that would completely clear AMC. The company opted to shut things down back on Marc 17th and expects to remain closed until the end of June. This suit comes after AMC announced a $500 million bond to keep things afloat during the coronavirus situation.
“We are ever so disappointed for our moviegoing guests and for our employee teams that the new CDC guidelines that Americans should not gather in groups larger than 10 people make it impossible to open our theatres,” AMC CEO and President Adam Aron wrote in a statement . “Still, the health and wellbeing of AMC guests and employees, and of all Americans, takes precedence above all else. We will continue to monitor this situation very closely and look forward to the day we can again delight moviegoers nationwide by reopening AMC movie theatres in accordance with guidance from the CDC and local health authorities.”
For A-List subscribers, those who are signed up to see free movies by paying a monthly membership fee, there are some new guidelines:
“Members will be notified prior to this pause expiring and will have the option to choose to extend the pause for another month if they so desire,” AMC wrote in a statement. Additionally, any A-List member who did not renew their membership any time so far in calendar year 2020 will not have to wait the customary 6 months to rejoin.”
When do you think theaters will open near you? Let us know in the comments!
