Resolving a Commercial Lease Dispute in Berlin
Client: Mid-Sized European Retail Chain – Berlin, Germany
Industry: Retail & Commercial Real Estate
Case Type: Real-Time Commercial Litigation
Duration: January 2025 – March 2025
Background
In late 2024, our client—a respected retail chain with a growing footprint across Germany and the UK—faced challenges fulfilling lease obligations for three flagship stores in central Berlin. The leases, executed in 2023, did not anticipate the lasting commercial disruption from post-pandemic consumer behavior shifts and rising urban vacancy rates. By early 2025, the property owner served breach notices and initiated eviction proceedings.
Legal Issue
The client faced imminent eviction, substantial financial exposure, and reputational harm across its EU operations. The key legal questions were:
- Whether the lease’s force majeure or hardship clauses could be interpreted to cover long-term pandemic-related economic fallout.
- Whether the landlord complied with German tenancy law, especially regarding notice periods and good faith renegotiation obligations.
- Whether court intervention or mediation could delay eviction and offer space for lease renegotiation.
Our Strategy
- Immediate Legal Action: We petitioned the local civil court for a temporary injunction (einstweilige Verfügung) to freeze eviction and safeguard the client’s business continuity.
- Lease Review: Our cross-border legal team analyzed the lease terms under both German commercial tenancy law (Mietrecht) and EU contractual principles.
- ADR Initiatives: While preparing a litigation roadmap, we engaged the landlord’s legal team through structured mediation, advocating for a rent adjustment.
- Economic Impact Assessment: We partnered with an independent financial consultancy in Frankfurt to quantify the business impact of the post-pandemic downturn on retail footfall.
Outcome
- Eviction proceedings were paused by court order within 72 hours.
- Mediation led to a mutually beneficial outcome within two months.
- A revised lease agreement was executed, featuring a 12-month rent relief period and a deferred payment structure.
- Litigation was avoided entirely, preserving goodwill between the parties and stabilizing the client’s Berlin operations.
Key Takeaway
This case demonstrates the value of swift and strategic legal action in high-stakes commercial disputes. At Best Deal Group, we blend UK-German legal expertise with business acumen—providing tailored solutions to preserve operations, protect assets, and avoid reputational risk.
Litigation in a Construction Delay Dispute
Client: Private Real Estate Developer – Munich, Germany
Industry: Construction & Real Estate Development
Case Type: Real-Time Construction Litigation
Duration: February 2025 – April 2025
Background
Our client, a prominent German property developer, engaged a regional construction company for a €2.9 million residential complex in central Munich. The construction agreement—governed by VOB/B (German construction contract procedures)—included detailed milestone deadlines, staged payments, and penalty provisions for delay.
By early February 2025, the contractor missed two critical deadlines, citing material import delays and subcontractor shortages. Our client, however, raised concerns about project mismanagement and non-compliance. The conflict intensified when the contractor filed for an extension of time and compensation, prompting a legal escalation.
Legal Issue
Key questions in dispute included:
- Whether the delays constituted a breach of contract or were justifiable under the “unforeseen circumstances” clause in the VOB/B framework.
- Whether the contractor had legal grounds to claim both extension of time and additional compensation.
- Whether our client could legally enforce liquidated damages or terminate the contract for non-performance.
Our Strategy
- Contractual Review: Our legal team performed a clause-by-clause audit of the original agreement, addenda, and all correspondence to uncover breach points and procedural violations.
- Site Inspection: We organized an on-site visit with a certified Bauingenieur (construction engineer) to document physical progress and validate the timeline discrepancies.
- Dispute Management: While preparing a formal statement of claim for civil court, we encouraged structured negotiation to de-escalate tensions and push for early resolution.
- Expert Opinion: We retained a Munich-based quantity surveyor to independently assess the delay’s financial implications and challenge the contractor’s inflated compensation demand.
Outcome
- Both parties opted for accelerated arbitration under the German Arbitration Institute (DIS), avoiding protracted court litigation.
- The contractor’s claim for extra compensation was denied due to lack of substantiating evidence.
- Our client was awarded liquidated damages under the penalty clause and executed a compliant contract termination.
- Construction resumed under a new contractor, with improved project controls and revised delivery milestones.
Key Takeaway
Construction and real estate projects face frequent risks—from supply chain disruptions to contractor disputes. At Best Deal Group, we combine legal precision and industry expertise to resolve disputes efficiently—helping developers protect their investments, enforce accountability, and avoid unnecessary delays.
