Like many industries, the New York State and New York City judicial system has been deeply impacted by the COVID-19 Worldwide Pandemic.  When the number of infected citizens began to rise in early March, Governor Andrew Cuomo and Chief Judge of the Court of Appeals Janet DiFiore wisely mandated the closing of all courts with respect to new and ongoing matters, except for matters deemed to be essential or emergencies.

On March 20, 2020, Governor Cuomo signed Executive Order 202.8 which defines essential and emergency matters in the various courts throughout the state and limits the commencement and filing of non-essential matters until April 19, 2020.  As it relates to the NYC Housing Courts, the Order deems landlord lockouts, serious housing code violations and repair orders as essential functions, and all other matters, such as first-time court appearances, compliance and settlement conferences as non-essential.

Also, effective March 20, 2020, a 90-day moratorium on evictions of residential and commercial tenants was imposed.  Accordingly, whether a warrant of eviction has been signed or not, neither individual tenants nor businesses can be evicted in New York State until June 19, 2020, at the earliest.  In the last 48 hours the New York State Legislature has introduced a new bill to stem the tide of eventual non-payment proceedings against tenants who have not paid their rent during the 90-day moratorium on evictions that will be lifted in late June.  The Tenant Safe Harbor Act is intended to further stay the evictions of tenants for another six (6) months after the COVID-19 Pandemic is deemed officially over.  Landlords would still be able to initiate claims for unpaid rent and seek a money judgment for rental arrears owed, but evictions for those unable to pay that amount would effectively be halted for the period.  This measure is largely seen in political circles as a way to avoid the polarizing movement of suspending or canceling rent obligations while the crisis continues, which obviously remains extremely unpopular with landlords, considering that they would receive no rental income but continue to be obligated to pay their mortgages, property insurance and real estate taxes.

As a way of curtailing this tidal wave of non-payment of rents, we encourage landlords and management companies to maintain an open dialogue with their individual tenants who have been laid off or furloughed, and businesses that have been forced to close during this crisis, and discuss the possibility of implementing a payment plan to pay ongoing rent in order to avoid the difficulty of going to court after the legal restrictions have been lifted.  Leases can be renegotiated and amended to account for the ongoing crisis, leaving all parties with a sense of satisfaction that payments will eventually be made, and obligations will be met.

Additionally, as indicated in a press release by Chief Administrative Judge Lawrence Marks on April 6, 2020, virtual courts are up and running for essential and emergency matters via Skype.  The virtual court process has allowed the courts to continue functioning for essential and emergency matters while limiting the number of court personnel needed to operate at a minimal level and practice safe social distancing.  I can speak from experience, having appeared before the court via Skype last week, that the system works and allows for all parties to participate fairly and expeditiously. Unfortunately, for self-represented individuals who do not own a computer, they must still appear in court in-person for an essential or emergency matter.  This obviously puts a strain on low-income tenants to risk going outside and entering the courthouse in order to have their day in court.

Lastly, as reported in a memo on April 7, 2020 by Judge Marks, starting April 13, 2020, the courts statewide will "take certain preliminary steps to open up access — remote access — to the courts for nonessential pending cases.”  Although this news is encouraging to the litigation bar, the memo refers specifically to such non-essential matters as “tort (including medical practice and asbestos), commercial, matrimonial, trusts and estates, felony and other categories of cases.” Thus, it is unclear whether landlord-tenant cases in Housing Court are included to restart on April 13th or whether they will continue to be postponed to April 19th, pursuant to Governor Cuomo’s original Order.

We at RICHTER RESTREPO PLLC are closely monitoring the ongoing crisis and the new laws being considered, and we will provide updates when they become available.  Please do not hesitate to reach out to us to discuss your real estate, construction, development, and real property litigation  related questions.  We wish everyone good health and safety during this difficult time.

Resources:

New York State - Executive Order 202.8 - http://www.nycourts.gov/whatsnew/pdf/EO-202.8-ocr.pdf

A List of Essential Matters - http://www.nycourts.gov/whatsnew/pdf/Essential-Matters-ExhibitA.pdf                     

  New York Tenant Safe Harbor Act - https://ny.curbed.com/2020/4/7/21212353/new-york-coronavirus-rent-eviction-bill-covid-19           

Virtual Courts Up and Running Statewide Courts Remain Open for Essential and Emergency Proceedings - http://www.courts.state.ny.us/LegacyPDFS/press/PDFs/PR20_14virtualcourtsstatewide.pdf     

Next Steps for Non-Essential Matters - https://nysba.org/app/uploads/2020/04/Next-StepsCourts.pdf 

-“Guidance on Executive Order 202.6 Guidance For Determining Whether A Business Enterprise Is Subject To A Workforce Reduction Under Recent Executive Orders.” https://esd.ny.gov/guidance-executive-order-2026


-“Amid Ongoing COVID-19 Pandemic, Governor Cuomo Announces 'NYS on PAUSE' Extended until May 15." https://www.governor.ny.gov/news/amid-ongoing-covid-19-pandemic-governor-cuomo-announces-nys-pause-extended-until-may-15 

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Published: 04/09/2020