Covid-19

CLIENT ALERT: Landlord-Tenant Issues: Eviction Moratorium to be Extended

On May 7, 2020, Governor Cuomo announced that the prohibition on both residential and commercial evictions will be extended by sixty (60) days.

The initial moratorium on evictions that took effect on March 22, 2020 was imposed for ninety (90) days and was set to expire on June 20, 2020.  Recently however, the Governor has been under significant pressure from tenant advocacy groups to extend additional relief to tenants.  Phrases such as “tidal wave of evictions” have been used to describe what tenant advocacy groups see as a veritable sword of Damocles hanging over the heads of tenants who cannot, or do not, keep up with rent payments during the COVID-19 pandemic.  Conversely, most landlord advocacy groups have cautioned against drastic governmental actions that may endanger the ability of landlords to provide services to their tenants, many of those services being government mandated.  The moratorium on evictions will now expire on August 19, 2020.

Returning to Work: Reopening the Workplace in a COVID-19 World

Although the timing, scope, and conditions for New York businesses to reopen currently remain uncertain, there is no doubt that once Governor Cuomo rescinds Executive Order 202.8 (which ordered 100% on-site workforce reduction for all non-essential businesses in New York) all businesses that are able to do so will reopen. Moreover, it seems apparent that reopening will occur long before the general threat of COVID-19 infections has completely subsided. That being the case, employers across New York will be facing some significant new issues and challenges as they resume operations while taking steps necessary to protect the health and safety of their employees. This is a brief overview of what steps employers should consider taking now as they prepare to reopen their workplaces, and of information that is available to employers to assist them in doing so.

The SECURE Act and Retirement Accounts

The retirement account has long been an advantageous tool for tax and estate planning. Workers could defer taxes on earnings by contributing to these accounts and deferring tax on distributions until they retired. Beneficiaries who inherited retirement accounts were able to “stretch” distributions over their lifetimes and therefore defer the income taxes resulting from such distributions. Well-drafted trusts which were named as beneficiaries of retirement accounts were also entitled to stretch distributions over the lifetime of the trust beneficiary. However, the Setting Every Community Up for Retirement Enhancement Act (the “SECURE Act”), enacted at the end of 2019 severely limits the ability of many individual and trust beneficiaries to defer distributions from inherited retirement accounts.

Client Alert: Landlord-Tenant Issues – New York Tenant Safe Harbor Act

On April 7, 2020, new tenant friendly legislation was introduced in the New York State Senate and Assembly.  Titled the “New York Tenant Safe Harbor Act,” it would prohibit a landlord from evicting a tenant due to that tenant’s failure to pay rent for a period (i) commencing with the Governor’s declaration of a State of Emergency on March 7, 2020 and (ii) ending on a date six (6) months after the Governor lifts the State of Emergency.

Client Alert: Business Interruption Insurance Coverage: Federal Legislation May Be On The Way

Insurance coverage for business interruption losses caused by the COVID-19 pandemic is the subject of proposed legislation in New York and a number of other states, as well as several lawsuits already commenced by insureds (see our other Client Alert about NY’s proposed legislation here). But whereas those efforts are largely directed at requiring insurers to provide coverage under existing business interruption insurance policy provisions – an uphill battle strongly resisted by the insurance industry – the US Congress is in the early stages of taking a different approach with proposed legislation that would create a new coverage mechanism specifically designed to address losses arising from a pandemic.

Client Alert: Impossibility, Frustration of Purpose, and Impracticability: Doctrines that may excuse contractual performance during the COVID-19 pandemic

In a previous Alert, we discussed how the operation of a force majeure clause in a contract may excuse a party’s performance in whole or in part. But what if a contract does not contain a force majeure clause? Other legal doctrines may still come into play to excuse performance under the circumstances created by the current COVID-19 pandemic.

Client Alert: Estate Planning and the Coronavirus

Due to the COVID-19 pandemic, it is more critical than ever for everyone to have updated estate planning documents in place, especially individuals who are at high risk from the virus or have jobs that require close interaction with the public, such as essential medical professionals, police officers and firefighters.  The attorneys in our Trusts and Estates practice group are able to meet with you to discuss and complete your estate planning, while observing social distancing protocols through the use of telephone and video conferencing technology.  There are numerous options available to supervise proper execution of documents including remote witnessing and notarization protocols which have been permitted by recent executive orders issued by Governor Cuomo.

Client Alert: Is the COVID-19 Pandemic a Force Majeure Event?

The COVID-19 pandemic is causing businesses across the US to consider, many for the first time, the operation and effect of a mostly neglected provision in their contracts: the force majeure clause.

A force majeure clause allows a party to suspend or discontinue performance of its contractual obligations under specified circumstances. It may also limit a party’s liability. Often this clause is overlooked during contract negotiations as routine boilerplate, and covers generic events such as “disasters,” “acts of God,” “labor strikes,” “national emergencies,” or “circumstances beyond the control of the parties.” The question on the minds of many businesses now is whether the COVID-19 pandemic and the various workplace and other restrictions it has spawned qualifies as a force majeure event that will excuse a party’s performance of its contractual obligations in whole or in part. What follows is an introduction to the operation of force majeure clauses and how they may apply during the current COVID-19 public health emergency.

Client Alert: Changes to Property Tax Grievance Procedures in Westchester County

On April 20, 2020, Gov. Cuomo signed Executive Order 202.22, making some important changes to property tax grievance procedures in New York State and Westchester County in particular.

EO 202.22 permits the Cities and Towns of Westchester County to move the date to file property tax grievance back one month, and allows Boards of Assessment Review to conduct their hearings remotely, if necessary.

Client Alert: Virus claims are here: A range of policies may be impacted.

Many U.S. businesses are experiencing large financial losses due to the coronavirus pandemic.  Last month, governments imposed severe restrictions and businesses curtailed their customary operations in response to the crisis.  The loss of business income due to these events will result in significant first-party property insurance claims. The availability and scope of coverage available to businesses is likely to be disputed between insureds and insurers and litigated for years to come. Policy details and careful analysis will determine the success or failure of these claims.

Client Alert: Sweeping Changes to Medicaid Home Care, Effective 10/01/2020

While the Department of Health provided temporary relief to Medicaid recipients and applicants during the COVID-19 pandemic, the New York legislature has enacted new restrictions on Medicaid home care applications that are slated to go into effect on October 1, 2020.  These restrictions were recommended by the Governor’s Medicaid Redesign Team in an effort to reduce New York State’s rapidly expanding Medicaid budget.  Although applicants who seek Medicaid payments for nursing home care have long been subject to imposition of transfer penalties for gifts made in the five-year (60-month) “look back” period prior to the submission of the application,  New York has not previously penalized transfers of assets made by applicants for services in the home.  However, as of October 1, 2020, gifts made in the 30-months prior to submission of a Medicaid home care application will be penalized unless qualified as an exempt transfer.  Additionally, the legislation authorizes changes to the home care assessment and delivery process.

Client Alert: Medicaid Updates

Temporary Easing of Medicaid Documentation Requirements

The COVID-19 pandemic has been a cataclysmic event for our nation’s most vulnerable, particularly the elderly.  Nursing homes and assisted living facilities are on lockdown, and home care patients struggle to find and maintain care as the number of available home health aides has dropped precipitously.  New Yorkers who rely on the Medicaid program to finance their home care services face all these same challenges, with the added pressures of limited means.

Client Alert: COVID-19 Estate Planning Update

With the COVID-19 pandemic currently ravaging New York State and the nation, there has never been a more critical time to review and update your estate planning documents.  Yet, until now, the social distancing rules currently in place have made it very difficult, if not impossible, for clients to execute some of the most important estate planning documents (like wills) because applicable law required witnesses to be physically present when these documents were signed.  However, just this past Tuesday, April 7, 2020, New York Governor Andrew M. Cuomo issued Executive Order 202.14, which allows for remote witnessing of these crucial estate planning documents via videoconferencing technology.  In a previous Executive Order, Governor Cuomo allowed a Notary Public to take an acknowledgment or oath remotely over videoconferencing software as well.

COVID-19 CLIENT ALERT – LANDLORD-TENANT ISSUES

While the Governor has mandated that banks provide homeowners with “forbearance” regarding their home mortgage payments if the homeowner is facing financial hardships due to the COVID-19 pandemic, to date there has not been any corresponding requirement that landlords provide “forbearance” to tenants with respect to their rent obligations.  The rights available to tenants may well be determined by two considerations:  whether they are residential or commercial tenants; and the language in their leases.

Client Alert: FAQ: Commercial Real Estate Leasing, Lending, and Related Issues During the COVID-19 Health Crisis

My company is unable to use its rented space during the 100% in-person workforce reduction mandated by Gov. Cuomo.  Are we still required to pay rent?

Currently there is no law or Executive Order relieving residential or commercial tenants of their obligation to pay rent during the COVID-19 outbreak.

COVID-19 CLIENT ALERT – Summary of the Coronavirus Aid, Relief and Economic Security (CARES) Act

On March 27, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a stimulus package of unprecedented proportions intended to provide economic relief and assistance to American individuals and businesses impacted by the COVID-19 pandemic.

Client Alert: Insurance, Construction & Deadlines

On March 29, 2020, Gov. Cuomo issued Executive Order 202.13 to provide further relief to individuals and small businesses coping with the COVID-9 pandemic health emergency, to clarify certain aspects of prior Executive Orders, and to temporarily modify certain existing laws. We provide highlights here of those portions of EO 202.13 that may be of particular interest to our clients.

Client Alert: COVID-19 and Public Bidding Procedures

COVID-19 has forced us to change the way municipalities go about public bidding.  Here are three key points to consider.

Client Alert: I Tested Positive for COVID-19: When Can I Return To Work?

The New York State Department of Health (“DOH”) issued guidance that expressly sets forth the protocols for essential personnel to return to work after being exposed or infected with COVID-19.

COVID-19 CLIENT ALERT

The COVID-19 pandemic is causing all New York businesses to face unprecedented uncertainties and challenges in a host of areas central to their operations. The landscape of state and federal laws being passed, and regulations and executive orders being issued, is changing almost daily. We are monitoring these changes in federal and state laws, and are continuing to provide guidance and advice to our clients as they navigate these ever-changing and uncharted waters.  Although not comprehensive, below we provide some highlights of important changes that may affect your business.