Bill Text: NY S08359 | 2019-2020 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-05-19 - REFERRED TO JUDICIARY [S08359 Detail]

Download: New_York-2019-S08359-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8359

                    IN SENATE

                                      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:

     1    Section 1. The real property law is amended by adding  a  new  section
     2  235-i to read as follows:
     3    §  235-i.  Unforeseeable event: COVID-19. 1. If a court as a matter of
     4  law finds performance under a commercial lease contract is frustrated or
     5  objectively impossible, either wholly or in part, as  a  consequence  of
     6  the  outbreak  of  novel coronavirus, COVID-19, such court shall further
     7  hold that COVID-19 constitutes an event that could not have  been  fore-
     8  seen or guarded against in such contract.
     9    2.  When  a party claims that performance under a commercial lease has
    10  been frustrated or made objectively  impossible,  either  wholly  or  in
    11  part,  as  a consequence of COVID-19, the parties to such contract shall
    12  be afforded a reasonable opportunity  to  present  evidence  as  to  the
    13  extent of the alleged frustration of purpose or impossibility, including
    14  but not limited to:
    15    a. tenant's loss in income compared to similar time periods;
    16    b.  prohibitions  and  guidance from governmental or industry authori-
    17  ties; and
    18    c. whether the temporary loss in income was otherwise recovered by the
    19  tenant.
    20    The court shall review any private financial documentation offered  as
    21  evidence  pursuant to this subdivision in camera to the extent necessary
    22  to protect the privacy of the tenant.
    23    § 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