Kel Kim Corp. v. Central Markets, Inc.

Kel Kim (plaintiff) leased a building from Central Markets (defendant) for ten years to operate a skating rink, and the lease required Kel Kim to maintain a public liability insurance policy; Kel Kim kept such a policy for the first six years, but its insurer then declined to renew due to financial troubles with its own reinsurer. When the policy lapsed, Central Markets issued a default notice demanding Kel Kim obtain replacement insurance or vacate, but Kel Kim was unable to find a replacement policy despite trying. Kel Kim sued for a declaratory judgment that it should be excused from the insurance requirement, citing either impossibility or the lease's force majeure clause, which excused performance for unforeseen events affecting a party's ability to conduct its day-to-day business. The trial court granted summary judgment ordering Kel Kim to vacate, and the appellate court affirmed.