Bill Text: NY S00040 | 2021-2022 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Provides that COVID-19 was an event that could not have been foreseen or guarded against for the purposes of establishing the impossibility of performance of a contract entered into prior to March seventh, two thousand twenty.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO JUDICIARY [S00040 Detail]
Download: New_York-2021-S00040-Introduced.html
Bill Title: Provides that COVID-19 was an event that could not have been foreseen or guarded against for the purposes of establishing the impossibility of performance of a contract entered into prior to March seventh, two thousand twenty.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO JUDICIARY [S00040 Detail]
Download: New_York-2021-S00040-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 40 2021-2022 Regular Sessions IN SENATE (Prefiled) January 6, 2021 ___________ 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. LBD02366-01-1