In the wake of the coronavirus pandemic (COVID-19) in the country, commercial renters are increasingly receiving messages from their tenants requesting rent relief due to constant changes in the protocols and mandates of federal, regional and regional public servants. Landlords now face the enormous task of maintaining commercial relationships with their tenants while facing the immediate loss of sources of income and no guarantee for future financial security. As COVID-19 continues to change the face of the real estate industry, it is increasingly important that landlords and tenants understand their rental rights and obligations. Yes, yes. Almost all commercial contracts, including most commercial leases, contain a force majeure clause. As a general rule, however, commercial tenants are usually still on the hook to pay rent to their landlords. Many commercial tenancy agreements contain a language stating that the case of force majeure should not be considered a defence in the event of non-compliance with the obligations relating to the payment of rent by a tenant. It should be noted that these carve-outs also protect landlords from tenants who refuse to pay rent because this case of force majeure that prohibits these tenants from entering rented premises or continuing their activities. Williamsburg Climbing Gym Co.
LLC and Fifth Concerto Holdco, Inc. v. Ronit Realty LLC, No 1:20-cv-02073 (E.D.N.Y. 2020) (The tenant asks for the resignation and explanation that he has legally terminated the tenancy agreement, in accordance with the usual laws, teach impossibility and usefulness, because COVID-19, the governor of the pandemic and executive orders, the closure of the company and the cessation of construction. The lessor claims to be in breach of the contractual counter-claim on the basis that this force majeure clause expressly excludes the provisions relating to the payment of rents; Tenant argues that the force majeure clause is inewable because the pandemic is not a listed event and frustration/impossibility are separate teachings; Counter-claims and response modified for other reasons.) (06/06/2020 Appeals; 24.06.2020 Responses and counter-claims; 24.06.2020 Defendant`s Motion Letter to Court Re: Judgment on Memoirs; 24.07.2020 23.07.2020 Claims Against Amended; 08/06/2020 Response to amended counter-claims; 14.08.2020 Applicant`s Advance Application Letter to the Tribunal Re: Intent to file a Motion a Motion Judgement; 8/20/2020`s Pre-Motion Letter to the Court Re: Plaint es Intent to file a Motion for Summary Judgement) It is precisely in the context of commercial real estate that it is important to verify your contract and proactively discuss the circumstances and options with an experienced lawyer, your landlord, tenant or lender. The option may include negotiating amendments and leniency agreements that specify in writing how the parties plan to manage the effects of the pandemic on their trade relations. Businesses should also carefully consider the tax and cash flow relief programs available to them by the federal government and the federal states and their respective authorities. Commercial landlords and tenants should explore and discuss sources of tax and financial relief with their trusted lawyers, accountants, brokers and advisors. For more economic support and information for small businesses, click here. 850 Third Avenue Owner, LLC v. Discovery Commc`ns, No. 654148/2020 (N.Y.
Sup. Ct. N.Y. Cty. 2020) (Plaintiff-landlord sued-tenant for unpaid rent after-defendant-tenant allegedly overstayed at the property once its lease expired. The force majeure clause in the lease stipulates that the performance is excused by “strikes, acts of God, lack of work or equipment, war, terrorist acts, civil unrest and other causes outside the proper control of the executing party.” The applicant describes these events as a “case of disorder” and argued that the COVID-19 restrictions introduced by the State Government do not constitute an “act of disorder”. Although government restrictions are a force majeure event under the contract of