Assembly Bill A10423

2019-2020 Legislative Session

Relates to judicial interpretation of commercial leases regarding whether COVID-19 was an event that could have been foreseen or guarded against

download bill text pdf

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Archive: Last Bill Status - In Assembly Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2019-A10423 (ACTIVE) - Details

See Senate Version of this Bill:
S8359
Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §235-i, RP L
Versions Introduced in 2021-2022 Legislative Session:
A1987, S40

2019-A10423 (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.

2019-A10423 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10423
 
                           I N  A S S E M B L Y
 
                               May 11, 2020
                                ___________
 
 Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Cruz) --
   read once and referred 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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