Samuel and Stein

Do I Still Owe Rent if COVID 19 Has Shut Down My Business? As COVID 19 continues to spread in the US many businesses are forced to close their doors due to mandatory quarantines or shelter in place orders. In these uncertain times many questions arise for both individuals and businesses. One of the most pressing questions for businesses is if my building has been closed due to COVID 19 do I still have to pay rent on the building? As with most legal questions the answer is t...hat it depends. Whether the contract is voidable will be decided on a case by case basis and will depend on the specific language of the contract, local laws and whether there is a casual connection between COVID 19 and your inability to pay. While it is always preferable to speak with your landlord in situations that cause unexpected hardships to try and work out a payment plan or deferment that works for both parties that is not always possible. How Can I Not Pay Rent? One of the biggest ways that business owners may be able to avoid paying their commercial rents if their landlord is unwilling to work with tenants is through the doctrine of frustration. This doctrine states that where the purpose of a contract is completely frustrated and rendered impossible of performance by a supervening event or circumstance which was not within the contemplation of the parties and which could not have been anticipated and guarded against, the contract is discharged. 119 Fifth Ave., Inc. v Taiyo Trading Co., 190 Misc 123, 124 (Sup Ct, NY County 1947). The case dealt with a Japanese American who was importing goods from China and Japan. Once the attack on Pearl Harbor occurred all his goods were seized, his warehouse was closed, and people were unable to trade with the Japanese or Japanese Americans who were considered the enemy. As a result, the man argued that he was not responsible for paying the lease. The Court found that the test for the doctrine of frustration The test seems to be whether the event which causes the impossibility was or might have been anticipated and guarded against."119 Fifth Ave., Inc. v Taiyo Trading Co., 190 Misc 123, 126 (Sup Ct, NY County 1947) and that the doctrine had previously been applied to leases . Although each case will need to be evaluated on its own merits, but there may be a strong argument to be made that the emergence of the COVID 19 and its consequences like the Japanese attack on Pearl Harbor could not have been anticipated and guarded against. If this is the case, then tenants of commercial leases may be able to avoid payment on their rent. Legal Disclaimer: This article is meant for informational purposes only. it is not meant to constitute legal advice nor is any sort of attorney client relationship established. See more

If Your College Dorm Closed Due To COVID-19, You May Be Entitled To A Refund.

Am I entitled to a refund from my college dormitory? In an effort to slow the spread of COVID-19, college dormitories across the nation have closed. Due to campus closures, New York students have found themselves returning home and completing coursework online. Refunds for college tuition seem to be a moot point in most cases, since classes are still being held online. But the situation has college students and parents wondering whether they’re entitled to a college refund fo...Continue reading

The New Stimulus Bill & What It Means for My New York-Based Business On March 25, 2020, the Senate passed a $2.2 trillion stimulus bill to assist businesses impacted by COVID-19. The Senate's unanimous vote, while encouraging, has been criticized by many. Some call the Coronavirus Aid, Relief, and Economic Security (CARES) Act overkill, while others say it's not enough. But one thing is certain: it has become apparent that the stimulus program's allocation of funds may be ina...Continue reading