Court Declines to Equitably Extend Leases in Lauchle v. The Keeton Group, LLC

In a lawsuit to determine the validity of leases under Pennsylvania's Guaranteed Minimum Royalty Act (GMRA), the U.S. District Court for the Middle District of Pennsylvania initially ruled the leases valid in October. On March 8, 2011, the Court addressed the Chief Defendant's motion to extend the leases by the amount of time during which the Plaintiffs contested the leases in Court, as development was halted for these two years. The Court ruled that merely bringing a declaratory judgment was not sufficient to constitute repudiation and entitle the Defendant to have the leases extended, declining to create precedent that would discourage lessors from bringing actions to determine the validity of their leases. To read the Court's decision, please view the Memorandum.

Written by Steven P. Trialonas, Research Fellow

March 8, 2011