For America’s economic recovery to move forward with relatively few hitches, liability limits are essential. History has shown how easily the mere threat of lawsuits by aggressive tort lawyers can derail critical recovery efforts. The White House and Congress should therefore work together to establish effective and appropriate liability limits. By modifying existing statutes that limit liability in a way that assures both fewer frivolous tort suits and effective pandemic mitigation and recovery policies, Washington will have done its part to prevent unscrupulous lawyers from needlessly hindering the economic recovery that Americans so desperately need. Colleague Brian Finch discusses key considerations in the whitepaper, Liability Protections Are Critical to Ensuring Economic Recovery originally posted on The Heritage Foundation.
Construction in COVID-19 – Updated Orders from around the United States
As seen in our Updated COVID-19 Construction Chart, many states saw action – or intentional inaction – this past week as it relates to COVID-19-related governmental orders. Continue Reading ›
Property Owner Bankruptcies and Personal Guaranties: What’s Next?
In the wake of COVID-19, default rates for commercial real estate loans, including those supported by personal guaranties, will likely accelerate. Inevitably, borrowers will consider seeking bankruptcy protection to implement a restructuring of debt or a sale of real property collateral, and lenders should not assume that personal guaranties will prevent borrower bankruptcies. In “Personal Guaranties May Not Deter Property Owner Bankruptcies,” colleagues Patrick J. Potter, Joshua D. Morse, Deborah B. Baum and Dania Slim discuss that lenders should plan for real estate owner bankruptcies despite having a non-recourse carveout guaranty triggered by the owner’s bankruptcy filing.
Boston Extends Construction Moratorium Amidst Stay-At-Home Orders
Boston Mayor Martin J. Walsh first limited construction in the City of Boston to essential work on March 17. This pause in non-essential construction has been extended indefinitely by order of the Boston Public Health Commission on April 24. On April 27, Mayor Walsh confirmed that he will not re-open the City on May 4, the date the Commonwealth is scheduled to re-open (Massachusetts Governor Charlie Baker extended his stay-at-home order on April 28 to May 18). In “City of Boston, Massachusetts Extends Construction Moratorium,” partner Paul Shapses discusses how non-essential construction is not presently permitted in Boston, but draft best practice guidelines and an associated contractor certificate identify the way forward for owners and contractors.
Chapter 11 and Multifamily Condo Regime’s Dual Challenges During COVID-19
With many struggling to make housing payments due to COVID-19, dues owed to multifamily condominium associations are likely to go unpaid—especially if homeowners feel deprived of the use of common areas, such as pools, gyms and playgrounds. In “How Chapter 11 Solved One Multifamily Condo Regime’s Dual Challenges of Mounting Liabilities and Unpaid Dues,” colleagues Patrick J. Potter, David L. Miller and Dania Slim discuss how multifamily condominium regimes with mounting liabilities and unpaid dues during COVID-19 may find answers in bankruptcy to the obstacles posed by individually titled units.
COVID-19’s Implications on California Commercial Tenant Security Deposits
In the wake of government-ordered moratoriums on commercial tenant evictions, how does a California commercial tenant’s security deposit come into play as an available landlord remedy for a lease default? In “California Commercial Tenant Security Deposits in a COVID-19 World,” partner Eric A. Kremer addresses this question by exploring how commercial lease tenant security deposits are subject to provisions under California law that may restrict a landlord’s use. However, such provisions can be waived by tenants.
COVID-19: CFIUS Implications for Real Estate Markets
The COVID-19 pandemic and the resulting economic turmoil have the potential to shake up the U.S. real estate market due to an anticipated influx of real estate investors looking to purchase heavily discounted, distressed assets and an expected increase in real estate foreclosures. In “Examining CFIUS Implications for the Real Estate Market in the Post COVID-19 World,” colleagues Nancy A. Fischer, Matthew R. Rabinowitz and Zachary C. Rozen discuss how non-U.S. real estate lenders and investors need to be aware of the potential that the Committee on Foreign Investment in the United States (CFIUS) may have jurisdiction to review, and potentially disallow certain investments in real estate and mortgage default remedies where foreign persons are involved.
Construction in COVID-19 – Updated Orders from around the United States
Like almost everything in the COVID-19 crisis, the construction landscape changes daily. Pillsbury has updated its analysis of the impacts to construction projects as a result of orders in the 50 states and Washington, DC.
Q&A with MRP Realty’s Bob Murphy: Can DC’s Multifamily Golden Age Continue?
Pillsbury and Bisnow recently interviewed MRP Managing Principal Bob Murphy as well as MRP Managing Director Allison DiGiovanni. Led by colleague Jamie Bobotek, who has worked with MRP on many of its most recent multifamily projects, Murphy and DiGiovanni discussed the state of DC multifamily and MRP’s long-term plans that will carry it through and beyond the current crisis.
CARES Act: Unemployment Insurance Provisions
The U.S. Department of Labor (DOL) offered guidance on the unemployment insurance (UI) provisions of the Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act). This builds upon actions previously taken by Congress such as the Families First Coronavirus Response Act (FFCRA) to extend UI coverage to individuals affected by COVID-19. In “Understanding the Unemployment Insurance Provisions in the CARES Act,” colleagues Laura K. Latham and Andrea R. Milano discuss the guidance issued by the The Department of Labor regarding federally funded initiatives to increase individuals’ unemployment insurance entitlement under the CARES Act.