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        <title><![CDATA[Angry WeWork tenants hire lawyers in effort to claw back rent]]></title>
        <atom:link href="https://usagag.com/2020/05/08/angry-wework-tenants-hire-lawyers-in-effort-to-claw-back-rent/" rel="self" type="application/rss+xml" />
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            <media:title type="html">Angry WeWork tenants hire lawyers in effort to claw back rent</media:title>
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        <content:encoded><![CDATA[<p>WeWork&#8217;s tenants are lawyering up.</p><p>Attorneys for cash-strapped clients of the office-subleasing startup are demanding that the company stop billing them for office space they can&#8217;t use because of coronavirus lockdowns and that it return the cash it has already collected for April and May.</p><p>&#8220;As long as this pandemic prohibits our clients from using their WeWork office spaces, the purpose of their membership agreements is frustrated, thus excusing their obligation to pay membership fees,&#8221; the letter from the law firm of Walden, Macht &amp; Haran reads.</p><p><strong>The Post previously reported</strong> that WeWork was keeping all of its Big Apple office-sharing spaces open and refusing to give subtenants a break on rent — despite numerous coronavirus outbreaks at its locations and Gov. Andrew Cuomo&#8217;s March 20 order which shut down all non-essential businesses statewide under penalty of civil fines.</p><p>Jim Walden, managing partner of Walden Macht &amp; Haran, told The Post in an interview that the &#8220;20 plus&#8221; LLCs the firm is representing turned to legal action only after being stonewalled and otherwise denied in their attempts to get deferrals or refunds from WeWork.</p><p>Walden added that several of his clients — who work at offices in New York, Los Angeles and Washington — witnessed police showing up to WeWork offices to make sure that no non-essential workers were in them, but that WeWork still refused to give them refunds.</p><p><span >&#8220;It’s funny how a crisis can reveal the true character of either a person or a company,&#8221; Walden said. &#8220;I think from my clients&#8217; perspective the fault lines in WeWork&#8217;s business model have come to light and its commitment to its community has come under question.&#8221;</span></p><p>The lawyers argue that as long as the pandemic is ongoing, they have no obligation to pay rent, calling WeWork&#8217;s decision to collect both &#8220;unlawful and hypocritical, since, as we understand it, WeWork has not been paying full rent to its own landlords.&#8221;</p><p>&#8220;It is hard to think of an event that more destroys the purpose of a WeWork membership agreement &#8230; than a deadly, highly communicable disease and resulting government order that prohibit use of the member&#8217;s office space,&#8221; the letter adds.</p><p>The tenants are demanding that their rent — which ranges from $450 to $5,000 per month, according to Walden — be frozen until they are legally allowed to return to their offices and that all rent paid since lockdowns began be returned. If WeWork doesn&#8217;t return the funds, the lawyers say they will pursue arbitration.</p><p>The membership agreement WeWork makes subtenants sign includes a condition that bars them from joining any class action lawsuit, as well as a waiver that says they won&#8217;t file a lawsuit to receive money damages. Walden, however, said that his firm will explore every option if WeWork is unwilling to cooperate.</p><p>&#8220;We&#8217;re hoping to give WeWork some opportunity to show its culture is not one that it seeking to profit from a pandemic,&#8221; Walden said. &#8220;If it doesn&#8217;t come to the table, we&#8217;ll file a complaint with the Attorney General&#8217;s office, we&#8217;ll file arbitration and we are still researching the merits of a federal action.&#8221;</p><p>A representative for WeWork declined to comment.</p>]]></content:encoded>
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