Commitments and Contingencies	9 Months Ended
Sep. 30, 2021
Commitments and Contingencies.
Commitments and Contingencies	14. Commitments and Contingencies Our properties require periodic investments of capital for general capital improvements and for tenant-related capital expenditures. We enter into various construction and equipment contracts with third parties for the development of our properties. At September 30, 2021, we had open commitments related to construction contracts of approximately $37.4 million. Additionally, we have commitments related to telecommunications capacity used to connect data centers located within the same market or geographical area, power usage, including fuel cell commitments, and company-wide improvements that are ancillary to revenue generation. At September 30, 2021, we had open commitments related to these contracts of approximately $64.7 million, of which $1.9 million is scheduled to be met during the remainder of the year ending December 31, 2021. In the ordinary course of business, we are subject to claims and administrative proceedings. Except as described below, we are not presently party to any proceeding, which we believe to be material or which we would expect to have, individually or in the aggregate, a material adverse effect on our business, financial condition, cash flows or results of operations. The outcome of litigation and administrative proceedings is inherently uncertain. Therefore, if one or more legal or administrative matters are resolved against us in a reporting period for amounts in excess of management’s expectations, our financial condition, cash flows or results of operations for that reporting period could be materially adversely affected. On May 9, 2019, we filed suit against 32 Sixth Avenue Company LLC, the landlord of our NY1 facility (the “Landlord”), and Telx - New York 6th Ave. LLC, the building’s Hub operator (“Telx”), in the Supreme Court of the State of New York, County of New York, asserting claims concerning the pricing for cross-connections in the Hub of the NY1 building. We assert that Telx’s September 2018 price increase for new fiber cross-connections violates our lease with the Landlord, which we assert guarantees specific pricing for Hub cross-connections for the duration of the lease term. The Landlord has asserted a counterclaim against us for indemnification. On February 9, 2021, Telx moved for leave to amend its answer to assert counterclaims against us, seeking a declaration that we are not entitled to such guaranteed pricing for cross-connections and claiming that we have been unjustly enriched by continuing to pay that guaranteed pricing after 2013, when Telx assumed operational control of the Hub and began billing us for Hub access. We have opposed Telx’s request for leave and are awaiting the Court’s decision. Meanwhile, the parties are engaged in discovery. We intend to vigorously pursue the claims made by us against the Landlord and Telx, and to defend the Landlord’s counterclaim and any counterclaims brought by Telx against us. We have not accrued any amount within our condensed consolidated financial statements for any counterclaims as it is not possible at this time to predict the timing or outcome of this matter or to estimate a potential amount of loss, if any.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

14. Commitments and Contingencies

Our properties require periodic investments of capital for general capital improvements and for tenant-related capital expenditures. We enter into various construction and equipment contracts with third parties for the development of our properties. At September 30, 2021, we had open commitments related to construction contracts of approximately $37.4 million.

Additionally, we have commitments related to telecommunications capacity used to connect data centers located within the same market or geographical area, power usage, including fuel cell commitments, and company-wide improvements that are ancillary to revenue generation. At September 30, 2021, we had open commitments related to these contracts of approximately $64.7 million, of which $1.9 million is scheduled to be met during the remainder of the year ending December 31, 2021.

In the ordinary course of business, we are subject to claims and administrative proceedings. Except as described below, we are not presently party to any proceeding, which we believe to be material or which we would expect to have, individually or in the aggregate, a material adverse effect on our business, financial condition, cash flows or results of operations. The outcome of litigation and administrative proceedings is inherently uncertain. Therefore, if one or more legal or administrative matters are resolved against us in a reporting period for amounts in excess of management’s expectations, our financial condition, cash flows or results of operations for that reporting period could be materially adversely affected.

On May 9, 2019, we filed suit against 32 Sixth Avenue Company LLC, the landlord of our NY1 facility (the “Landlord”), and Telx - New York 6th Ave. LLC, the building’s Hub operator (“Telx”), in the Supreme Court of the State of New York, County of New York, asserting claims concerning the pricing for cross-connections in the Hub of the NY1 building. We assert that Telx’s September 2018 price increase for new fiber cross-connections violates our lease with the Landlord, which we assert guarantees specific pricing for Hub cross-connections for the duration of the lease term. The Landlord has asserted a counterclaim against us for indemnification.

On February 9, 2021, Telx moved for leave to amend its answer to assert counterclaims against us, seeking a declaration that we are not entitled to such guaranteed pricing for cross-connections and claiming that we have been unjustly enriched by continuing to pay that guaranteed pricing after 2013, when Telx assumed operational control of the Hub and began billing us for Hub access. We have opposed Telx’s request for leave and are awaiting the Court’s decision. Meanwhile, the parties are engaged in discovery.

We intend to vigorously pursue the claims made by us against the Landlord and Telx, and to defend the Landlord’s counterclaim and any counterclaims brought by Telx against us. We have not accrued any amount within our condensed consolidated financial statements for any counterclaims as it is not possible at this time to predict the timing or outcome of this matter or to estimate a potential amount of loss, if any.

CoreSite Realty Corp 10-Q