Dawson and Coffey Secure Favorable Arbitration Award in Commercial Lease Dispute

December 8, 2008

On November 25, 2008, Alistair Dawson and Brad Coffey successfully defended a nationwide owner, operator and manager of long-term health care facilities in an arbitration proceeding in San Antonio, Texas.  The firm’s client, Living Centers of Texas, Inc. (a wholly-owned subsidiary of Mariner Health Care, Inc.), is the tenant under two commercial lease agreements with the plaintiffs/claimants for nursing home facilities in Texas.  Both leases are for a term of 20 years and do not terminate until 2021.  The landlords claimed that they were entitled to prematurely terminate and recapture the leases, and sought to evict the tenant from the nursing homes and collect hold over rental payments in excess of $500,000.  The Honorable David Peeples serving as arbitrator disagreed and found in favor of the tenant, declaring the leases to be in effect and awarding attorneys’ fees to the firm’s client.