BarbriSFCourseDetails

Course Details

This CLE course will provide landlord and tenant counsel with guidance on the leading defenses in commercial eviction cases in 2021 due to the pandemic-induced economic downturn and prior lockdown orders. The panel will advise on what tenants may expect in temporary relief, work-outs, and lease terminations and how landlords may negotiate rent relief in exchange for lease affirmations or extensions. Our panel will guide leasing counsel on reviewing lease terms and possible claims and defenses in this evolving commercial real estate landscape.

Faculty

Description

Since March 2020, the COVID-19 pandemic has caused substantial economic distress worldwide, particularly to U.S. landlords, small and large. Estimates show that more than 10 million renters are behind on payments, more than triple an average year. Federal, state, and local eviction moratoria have created an untenable situation for landlords unable to pay their own mortgages, maintenance, payroll, utilities, and other obligations. Recently, the courts are issuing decisions on the enforceability of the moratoria and landlords' rights under the contract and statutory law.

Counsel for both landlords and tenants should know the courts' rulings, particularly on common tenant defenses. Many cases dispute the validity of the eviction moratoria. Major New York, Florida, and California cases found that the doctrine of impossibility and frustration of purpose defenses were inconsistent with lease terms explicitly addressing the risk of a tenant's inability to operate. Other decisions, including a New York Supreme Court case, have found that frustration of purpose is a valid defense because the COVID-19 pandemic was not foreseeable.

With the uncertainty of rulings on tenant defenses and landlord claims, counsel and clients should consider alternatives beyond the courts to resolve defaulted leases. Utilizing various options, from filing claims on a tenant's business interruption insurance to developing work-out plans that address both tenant and landlord needs, should be examined.

Listen as our expert panel addresses the current decisions from commercial eviction cases and the successful defenses that have been presented. The panel will also advise on alternative resolutions to defaulted leases.

Outline

  1. Recent eviction cases
    1. Federal moratorium
    2. State and local
      1. New York
      2. Florida, California
      3. Other states
  2. Most successful defenses
  3. Alternative resolutions
    1. Business interruption insurance
    2. Work-outs

Benefits

The panel will review these and other key issues:

  • What is the status of the federal, state, and local eviction moratoria? What are recent court decisions on enforceability?
  • When are common law doctrines of frustration of purpose and impossibility successful defenses?
  • What should counsel, landlords, and tenants consider when resolving a defaulted lease outside of court?