LIEB BLOG

Legal Analysts

Friday, March 13, 2020

NYC Housing Court on Eviction Moratorium Due to Coronavirus

Effective March 13, 2020, the New York City Housing Courts are on a one-week moratorium on evictions in New York City, subject to further extension upon review. Further, New York City Housing Court is also directed to decline to issue new eviction warrants when a party has not appeared in court, until further notice.

This moratorium is imposed through a memorandum on the coronavirus from the Chief Administrative Judge of the State of New York Unified Court System. You can read the memorandum here.





Attention Idiots - You will get sued if you ignore quarantines & expose others to COVID-19

Coronavirus is NOT a HOAX - idiots - you are killing people.

A lot of people ask me what the MPH stands for after my name - Master in Public Health.

Plus, that Esq. thing makes me a litigator.

I keep reading about unqualified people telling you about coronavirus - well, I'm qualified & maybe it's time that we go back to relying on a meritocracy where you listen to the ones with diplomas on the wall rather than some rambling buffoon. This blog should help motivate you.

Did you know that Courts have ruled that "[a] duty to disclose has been held to exist where the
defendant knew or should have known that he or she had a communicable disease?"

Under the NYS Public Health Law §2(1)(l), a communicable disease "means infectious, contagious or communicable disease." Further, pursuant to 10 NYCRR 2.1 "Severe or novel coronavirus" is designated as a "communicable disease".

Based upon established case law, if someone is infected with coronavirus from an idiot who breaks quarantine they should sue for negligent transmission of the disease. Silver v. Levittown Union Free School District

I'm talking to you, idiot who took the plane to Florida
I'm talking to you, idiot who went to the daddy-daughter dance
I'm talking to you, idiot who went to a business event

This is not a joke, a drill, a hoax, a conspiracy or something the Democrats are doing to Trump - this is life & death.

If that doesn't matter to you, I hope the fact that you now know that you will be sued changes your mind.

If it doesn't, did you know that NYS Public Health Law §2120 permits involuntary commitment of dangerous and careless patients? Plus, §2101 has reporting requirements for physicians, superintendents or officers of institutions, householders, hotel or lodging housekeepers, or any other person where a report must be made to the health officer of the local health district.

What this means is if you are a conspiracy theorist on coronavirus, we are watching you, we are reporting on you, we will sue you and you will be quarantined anyway. Get it?

Please respect quarantines - they matter!


Thursday, March 12, 2020

Coronavirus & Commercial Leasing: What happens when your tenant doesn't pay rent?

Landlords - Here is your future:
  • There is a Coronavirus quarantine (voluntary or mandatory), which closes your property;
  • Tenant is forced to close;
  • Being closed, tenant makes no revenue or limited revenue from working from home;
  • Without revenue, tenant defaults on rent;
  • Without rent, landlord is now at risk of foreclosure and bankruptcy; and
  • Consequently, landlord will need to enforce its lease to stave off foreclosure and bankruptcy.


Can landlord successfully enforce its commercial lease?

If landlord seeks to enforce the lease, tenant will likely counterclaim for a rent abatement (reduction or elimination of rent) because of its inability to utilize the property. 

Who is going to win? 

The result likely depends on whether the lease has a clause called a "Force Majeure" or "Non-Performance" or something like that. 

This clause may read something like this: 
The Parties shall not be liable for any failure, delay or interruption in performing such Party's respective obligations hereunder due to causes or conditions beyond the control of such Party. Further, such Party shall not be liable unless the failure, delay or interruption shall result from the failure on the part of such Party to use reasonable care to prevent or reasonable efforts to cure such failure, delay or interruption.
"Causes or conditions beyond the control of such Party", shall mean and include acts of God ... war ... acts of third parties for which such Party is not responsible ... or any other condition or circumstances, whether similar to or different from the foregoing (it being agreed that the foregoing enumeration shall not limit or be characteristic of such conditions or circumstances) which is beyond the control of such Party or which could not be prevented or remedied by reasonable effort and at reasonable expense.
If the clause exists, the landlord has a shot at victory, but without the clause, the tenant will likely prevail, at least in part.

If the clause exists, the landlord's victory is dependent on the specific language of the clause. That is because of the rule that "[o]rdinarily, only if the force majeure clause specifically includes the event that actually prevents a party's performance will that party be excused." As a result, the language of the clause is everything.

Assuming the sample clause exists in the lease, here are the impending battlegrounds for ensuing litigation on enforcing the lease:

  • Is Coronavirus an act of god? 
  • If yes, is a quarantine resulting from Coronavirus also an act of god?
  • If no, is a quarantine resulting from Coronavirus an act of third-parties? 
  • If yes, did landlord undertake efforts to prevent the quarantine at the property? 
  • If yes, were those efforts reasonable? 
  • If no, did landlord undertake efforts to remedy the Coronavirus spread at the property?
  • If yes, were those efforts reasonable?  

We know that these lawsuits are coming and they are going to come fast. These lawsuits came after 9/11 - see One World Trade Center LLC v. Cantor Fitzgerald Securities. Only this time they are going to be everywhere because unlike 9/11, Coronavirus is everywhere.

Landlords - now is the time to ascertain your rights, determine your enforcement plan and create a contingency strategy. If you cannot enforce your lease, it's time to contact your lender and seek a forbearance (temporary reprieve from mortgage payments to avoid foreclosure). Doing nothing will create a strong likelihood of foreclosure and bankruptcy. It's time to act.





  

Friday, March 06, 2020

Real Estate Tips: Evaluating Projected Revenue

Tune in Sunday 3/8/20 at noon on LI News Radio 103.9 FM where Real Estate Investing Coach Andrew Lieb discusses projected revenue in real estate. Find out what information to request prior to negotiating terms of the deal. Discover tips to enhance future revenue and how to protect yourself from acquiring bad leases.

After the show airs - the Podcast will be available here. 


Residential House Flipping and Month-to-Month Leases

Tune in Sunday 3/8/20 at noon on LI News Radio 103.9 FM where Real Estate Investing Coach Andrew Lieb discusses what to look out for when flipping residential real estate. Learn the true costs of real estate transactional fees and policies that mortgage lenders have against issuing loans when the contract of sale dates are too close in time. Andrew Lieb also goes over what you need to know about evicting tenants that have month-to-month leases.

After the show airs - the Podcast will be available here.