Bill Text: NY A10423 | 2019-2020 | General Assembly | Introduced
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 6-0)
Status: (Introduced - Dead) 2020-05-11 - referred to judiciary [A10423 Detail]
Download: New_York-2019-A10423-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10423 IN ASSEMBLY 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: 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