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 and Tenants – Eviction Moratorium Update In LA County, the status on the eviction moratorium is summarized below and at https://dcba.lacounty.gov/noevictions/ FOR COMMERCIAL TENANTS As of February 1, 2022, commercial tenants are no longer protected from eviction due to nonpayment of rent. Commercial tenants will have the following time...
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...
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...
California Senate Bill No. 939 (“SB-939”) proposes to add Section 1951.9 to the Civil Code (“Section 1951.9”). If SB-939 is passed as currently proposed, it would become effective immediately and have a HUGE impact on existing leases and the rights of commercial property developers and landlords. SB-939 Would provide two...