COVID Shutdown Orders vs. Statutory Rent Obligations
October 01, 2020
Even though payment of post-petition rent under a nonresidential lease (prior to rejection) has historically been an absolute requirement, bankruptcy courts, as courts of equity, have the ability during these extraordinary times to take a more flexible approach. This clearly is an evolving trend that should continue for at least the duration of the pandemic and perhaps beyond, as bankruptcy judges and practitioners seek out creative and unique responses to difficult issues.
Do COVID-19 Rent and Eviction Protections Just Delay Inevitable Bankruptcy?
September 01, 2020
In attempts to alleviate the impact of job losses and business disruption due to COVID-19, state and local governments have passed emergency orders and regulations temporarily prohibiting evictions and extending deadlines to pay rent, among other restrictions. When those restrictions are lifted, there is no guarantee that they will have done more than delay the inevitable: eviction and bankruptcy.
COVID-19 Related Governmental Shut Down Order Triggers Force Majeure Provision In Restaurant Leases
September 01, 2020
As we all expected, cases are being brought and decided on the issue of whether the COVID-19 pandemic and related governmental shut down orders trigger force majeure clauses in commercial leases and operate to excuse the performance of commercial tenants. While force majeure clauses vary widely, a recent decision from an Illinois Bankruptcy Court may provide guidance to help resolve disputes without resorting to the courts.
Landlord & Tenant Law
September 01, 2020
Landlord Did Not Waive No-Assignment Provision
Lease Renewal Option Unenforceable In the Absence of a Rent Term
Issues of Fact Remain About Landlord Tampering Recertification Process
Landlord Must Accept Security Deposit Vouchers from Human Resources Administration
Loft Unit Subject to Rent Regulation, But Four-Year Lookback Period Applies
Tenant Engaged In Illegal Short-Term Rentals
NYC Law Providing Relief for Commercial Tenants Faces Constitutional Scrutiny
September 01, 2020
New York City Mayor Bill de Blasio delivered another striking blow to property owners when he signed into law N.Y.C. Council Int. No. 1932-A (2020) on May 26, 2020. The new legislation prohibits landlords from enforcing personal guaranties on certain commercial leases for defaults occurring between March 7, 2020 and Sept. 30, 2020.
New York's Commercial Lease Defenses to Paying Rent
September 01, 2020
Not including what may have been negotiated in a commercial lease, there are three traditional theories under which commercial tenants could seek to assert entitlement to forgiveness of their rent: frustration of purpose, impossibility of performance, and force majeure.
Commercial Real Estate Market Lags Behind Residential Rebound
September 01, 2020
National Association of Realtors Survey Shows Most Commercial Tenants Struggling to Pay Rent
While the residential real estate market is experiencing what appears to be a swift rebound from the coronavirus-induced slump, the commercial landscape still looks relatively bleak.
Twitter Chat Recap
September 01, 2020
Several members of Commercial Leasing Law & Strategy's Board of Editors and contributors to Law.com and our ALM sibling GlobeSt.com took part in a Twitter chat on "Do We Need Offices Anymore?"