"Frustration of Purpose" Didn’t Terminate Tenant’s Lease
Facts: A tenant leased space at a shopping center for its sporting goods store. The center was in a flood zone and had been flooded several times, ruining the inventory of the center’s tenants each time. Under the lease, the tenant was required to have an “all-risk” insurance policy that would cover flood-related damage, including improvements, furniture, and lost inventory. As a result of a tropical storm, a nearby river flooded the center and the area was evacuated and declared a major disaster area.