BANKRUPTCY COURT REQUIRES TENANT TO CURE LEASE AND GIVE ADEQUATE ASSURANCES OF FUTURE PERFORMANCE When a tenant files bankruptcy, the tenant has a short period of time to assume the lease but must cure any defaults in payment and offer to the landlord adequate assurances of future good performance. In...
Landlords and Tenants – Eviction Moratorium Update To The Prior Update California just extended the law until June 30th that protects residential tenants who have a pending application for money to pay back rent that the tenant could not pay because of the COVID-19 pandemic. The law extension will stop...
Landlords, Tenants, Guaranties and Bankruptcy The new case of Lariat Company, Inc. v. Wigley (In re Wigley), 15 F.4th 1208 (8th Cir. 2021) shows exactly what a landlord should do in pursuing a guarantor (and his wife) when the tenant defaults and the guarantor tries shenanigans to try to avoid...
EVICTION AND RENT INCREASE MORATORIUM UPDATE Los Angeles CITY extends Local Emergency to January 8, 2023 Los Angeles City eviction moratorium is extended through January 8, 2023, and then it will be considered for further extension on a month-to-month basis. The Los Angeles Housing Department (“LAHD”) website[1], under the tenant...
COMMERCIAL LANDLORDS COVID-19: Force Majeure Clauses in Contracts – NY Court Decision We previously noted that most commercial leases contain Force Majeure clauses, that is, a provision in the lease that allows the tenant or landlord to be released from performance if there is an act of god or some...
NEW LANDLORD PROTECTIONS - COVID BANKRUPTCY FILINGS BY TENANTS The newly enacted Consolidated Appropriations Act, 2021 (“CAP”) makes several amendments to the Bankruptcy Code based upon the severe financial hardships suffered by both tenant debtors and landlords as a result of the COVID-19 pandemic. The amendments relate to the deferral...
Bankruptcies: Abatement of Rent During the Pandemic 2020 has not been kind to landlords, restaurants, and other segments of the retail industry. Commercial landlords need rents to pay the property taxes, insurance and mortgage, which may be guarantied by the owners of the corporate landlord. Commercial tenants need retail sales...
Tenants & Landlords: Temporary Eviction Moratorium & Rent Freeze Have Been Extended to July Earlier this week, LA County issued an executive order which extends an existing temporary moratorium on evictions in parts of LA County, in response to the COVID-19 health emergency. The eviction moratorium will remain in place until July 31, 2020. The...
COVID-19: Force Majeure Clauses in Contracts – Court Decision These are trying times. Did your business get shuttered by governmental mandated closure orders due to COVID-19? Are your business vendors and contract parties still looking to your business to timely pay and perform as normal? Contracts often include a force...
KEY PROVISIONS OF ASSEMBLY BILL 828 (AB 828): On April 14, 2020, Assemblyman Phil Ting (San Francisco) introduced legislation for a temporary moratorium on foreclosures and evictions due to the economic impact of COVID-19. In an unlawful detainer action, if the tenant’s inability to pay rent is due to increased...