Schulte Roth & Zabel is suing the owner of the building that houses its Manhattan headquarters, alleging the firm is owed over $10 million because the landlord refused to abate its rent despite COVID-19 restrictions.

In a complaint filed Friday in Manhattan state court, Schulte Roth accused landlord Metropolitan 919 3rd Avenue LLC of breach of contract. It's the latest large law firm to bring legal action against its landlord over rent during the pandemic.

Simpson Thacher & Bartlett sued the owner of its Manhattan office building in July, alleging it is owed at least $8 million because of COVID-19 restrictions. In May, a Chicago landlord sued Jenner & Block, alleging it had failed to pay its rent due on April 1 and May 1 and that it owed more than $3.7 million; the firm has said it is entitled to rent abatement.

The coronavirus pandemic sparked nationwide economic shutdowns in March and April, and many law firm offices have remained largely empty since then. As the crisis drags on, many in the legal industry have said firms are weighing their need for office space, now and in the future.

Schulte Roth, represented in its lawsuit by Foley & Lardner, said it hasn't been able to fully use its office space at 919 3rd Avenue since March 13 because of pandemic-related government orders and health risks.

It said it notified its landlord on March 31 that it would seek rent abatement, as it is entitled to under its lease if it can't fully use its office for a period in excess of 15 consecutive days because of "laws, governmental preemption in connection with a national emergency ... or other emergency."

But 919 Third Avenue LLC denied that request, according to the complaint, saying in an April 4 letter that the firm was "only entitled to Rent Abatement in the event of a breach by Landlord."

Schulte Roth said it then continued paying its rent, but "under protest — without waiving, releasing, or otherwise modifying its rights."

919 3rd Avenue LLC owner SL Green Realty Corp said in a statement shared with Reuters by its counsel, Janice Mac Avoy of Fried, Frank, Harris, Shriver & Jacobson, that it has worked to ensure that its building has remained open and accessible to tenants this entire year.

The lawsuit is without merit, the statement said, and "the attempt by Schulte Roth & Zabel and other well-heeled, white shoe firms to take advantage of the pandemic and try to weasel out of their financial commitments at a time when the vast majority of New Yorkers continue to meet their obligations poses a very serious threat to New York City and its economy."

Schulte Roth said in a statement that the firm "filed a claim for a rent abatement against our New York landlord pursuant to a clear and explicit rent abatement provision in our lease agreement," adding that it "continued to pay rent while preserving our rights."

UPDATE: This story has been updated to add comment from 919 3rd Avenue LLC owner SL Green Realty Corp.

The case is Schulte Roth & Zabel LLP v. Metropolitan 919 3rd Avenue LLC in the Supreme Court of the State of New York County of New York, No. 655632-2020.

For Schulte Roth & Zabel: Peter Wang, Douglas Heffer and Christopher DeGennaro of Foley & Lardner LLP.

For Metropolitan 919 3rd Avenue LLC: Janice Mac Avoy of Fried, Frank, Harris, Shriver & Jacobson.