By Esther Fung

Mall owner Taubman Centers Inc. is fighting back to retain the $3.6 billion deal it had with Simon Property Group, arguing that the coronavirus pandemic doesn't allow buyers to walk away because they "no longer like the deal they made."

"This is a classic case of buyer's remorse," Taubman said in a court filing Wednesday, in response to Simon's lawsuit to break the deal. Taubman has asked for an expedited hearing to prevent Simon's attempt to "run out the clock" on the transaction, which would cause "irreparable harm" to its shareholders.

A Simon spokesman said the pandemic has disproportionately affected Taubman compared with others in the retail real estate industry and that the agreement gives it the right to terminate the deal. "Nowhere in its extensive legal filing does Taubman seriously contest that it was not disproportionately impacted," said the Simon spokesman, adding that Simon Property looks forward to proving its case in court.

The agreement was signed on Feb. 9, when Simon knew "full well that there was a pandemic raging in the world," Taubman said.

Taubman added that it isn't disproportionately affected by the pandemic and that Simon has mischaracterized its right to end the agreement.

Simon told its shareholders that it is unable to predict the pandemic's impact on its own financial results, let alone claim that the pandemic's impact on Taubman's earnings potential is amplified, Taubman said.

Taubman also disputed Simon's claims that it had violated the proposed transaction by failing to take timely action to lay off staff or cut executive compensation to reduce expenses. Taubman said it has honored the deal's covenants by sticking to its "ordinary course" of business.

Since Simon's move to scrap its plan to take over Taubman last week, shares of both mall owners have declined by around 17%.

Taubman would require a speedy hearing, given that the deal is scheduled to close on June 30 following shareholder approval at a special meeting of Taubman's shareholders set on June 25.

Simon last week said it is terminating the deal, in what is yet another sign of the severe pressure the retail sector and mall industry are grappling with during the pandemic.

The deal would have combined two major landlords as the industry struggles with an oversupply of malls and the decline of traditional stores against the rising tide of e-commerce.

Write to Esther Fung at esther.fung@wsj.com