Lord & Taylor, White Flint Mall Spar in Maryland Lawsuit

Since last summer, department store Lord & Taylor has been trying to block redevelopment of North Bethesda’s White Flint Mallon Rockville Pike, where it is the anchor tenant. Though Lord & Taylorfailed to get a temporary injunction, the company still hopes to succeed at trial. Most recently, Lord & Taylorhas filed a protective order seeking to stop White Flint from taking the deposition of the chief executive officer of Lord & Taylor’s parent company, Hudsons Bay Co.

Lord & Taylor says CEO Richard Baker has no knowledge of the litigation, other than the fact that it is ongoing, nor is he familiar with the documents or issues involved. The deposition, they allege, is nothing more than an attempt to harass them. Mall owner “White Flint LP” insists the CEO of the parent company must have some knowledge of case.

Lord & Taylor has been trying for months to stop the conversion of the White Flint Mall, currently 800,000 square feet, into a 5.2 million-square-foot mixed-use development. White Flint has been trying to allow tenant leases to expire so that the Mall can close in 2014.

According to Lord & Taylor’s complaint filed last July, White Flint has violated several provisions of its lease agreement, including one to maintain “a first class high fashion regional shopping center.” They also claim that, according to the lease, White Flint is not allowed to make substantial changes to the facility without Lord & Taylor’s permission.

Lord & Taylor has said the redevelopment can go forward once the lease has expired. That wouldn’t happen for several decades, however. Under its terms, the store’s 80-year lease ends in 2055. White Flint LP would have to wait until then to redevelop the Montgomery County property.

In its unsuccessful attempt to stop development in July, Lord & Taylor indicated that it would accept monetary damages as an alternative if an injunction were not issued.

Shopping mall leases and other long-term leases must fully anticipate and provide for changing circumstances and needs. When they don’t, litigation is sometimes the result. If you are involved in a lease dispute, a breach of contract case, or other disagreement over real estate, skilled counsel can help you achieve your objectives, in or out of court. The Bethesda and Rockville, Maryland real estate litigation attorneys of Longman & Van Grack have years of experience handling all types of disputes involving leasing, land use, and real property issues. Contact us at (301) 291-5027 for a consultation.