|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|May 19, 2020||referred to judiciary|
senate Bill S8359
Archive: Last Bill Status - In Senate Committee Judiciary Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S8359 (ACTIVE) - Details
S8359 (ACTIVE) - Summary
Provides that COVID-19 constitutes an event that could not have been foreseen or guarded against in a commercial lease contract where such contract is frustrated or objectively impossible, either wholly or in part, as a consequence of the outbreak of novel coronavirus, COVID-19.
S8359 (ACTIVE) - Sponsor Memo
BILL NUMBER: S8359 SPONSOR: HOYLMAN TITLE OF BILL: An act to amend the real property law, in relation to judicial interpre- tation of commercial leases regarding whether COVID-19 was an event that could have been foreseen or guarded against PURPOSE OF BILL: The purpose of the CLEAR Path Forward Act is to reduce litigation, encourage landlords and tenants to negotiate a settlement without going to court, minimize business disruption in our communities, and bring clarity and consistency to judicial interpretations across the state with respect to whether COVID-19 was an event that could have been fore- seen or guarded against in a commercial lease contract. SUMMARY OF SPECIFIC PROVISIONS: Subsection (1) provides that, where the court determines that perform-
S8359 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 8359 I N S E N A T E May 19, 2020 ___________ Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the real property law, in relation to judicial interpre- tation of commercial leases regarding whether COVID-19 was an event that could have been foreseen or guarded against THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The real property law is amended by adding a new section 235-i to read as follows: § 235-I. UNFORESEEABLE EVENT: COVID-19. 1. IF A COURT AS A MATTER OF LAW FINDS PERFORMANCE UNDER A COMMERCIAL LEASE CONTRACT IS FRUSTRATED OR OBJECTIVELY IMPOSSIBLE, EITHER WHOLLY OR IN PART, AS A CONSEQUENCE OF THE OUTBREAK OF NOVEL CORONAVIRUS, COVID-19, SUCH COURT SHALL FURTHER HOLD THAT COVID-19 CONSTITUTES AN EVENT THAT COULD NOT HAVE BEEN FORE- SEEN OR GUARDED AGAINST IN SUCH CONTRACT. 2. WHEN A PARTY CLAIMS THAT PERFORMANCE UNDER A COMMERCIAL LEASE HAS BEEN FRUSTRATED OR MADE OBJECTIVELY IMPOSSIBLE, EITHER WHOLLY OR IN PART, AS A CONSEQUENCE OF COVID-19, THE PARTIES TO SUCH CONTRACT SHALL BE AFFORDED A REASONABLE OPPORTUNITY TO PRESENT EVIDENCE AS TO THE EXTENT OF THE ALLEGED FRUSTRATION OF PURPOSE OR IMPOSSIBILITY, INCLUDING BUT NOT LIMITED TO: A. TENANT'S LOSS IN INCOME COMPARED TO SIMILAR TIME PERIODS; B. PROHIBITIONS AND GUIDANCE FROM GOVERNMENTAL OR INDUSTRY AUTHORI- TIES; AND C. WHETHER THE TEMPORARY LOSS IN INCOME WAS OTHERWISE RECOVERED BY THE TENANT. THE COURT SHALL REVIEW ANY PRIVATE FINANCIAL DOCUMENTATION OFFERED AS EVIDENCE PURSUANT TO THIS SUBDIVISION IN CAMERA TO THE EXTENT NECESSARY TO PROTECT THE PRIVACY OF THE TENANT. § 2. This act shall take effect immediately. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16262-01-0
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