The U.S. Supreme Court on Wednesday ruled that the Mall of America outside Minneapolis - the nation's largest shopping complex - can challenge an extremely cheap lease it made decades ago with Sears Holdings Corp, which was subsequently sold to a new owner during the department store chain's bankruptcy.
In a 9-0 ruling written by Justice Ketanji Brown Jackson, the Supreme Court overturned a lower court's decision against MOAC Mall Holdings LLC, the parent company of the mega-mall located in Bloomington, Minnesota. The ruling means that MOAC Mall Holdings can proceed with its challenge to the lease in a lower court as it seeks the ability to charge more to rent the space that Sears had occupied.
The Sears location has been closed since 2019, and Mall of America said in court filings it wanted to start over with a new lease rather than allowing the new leaseholder to sublease the space at the cheap rate.
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