Contracts Clause

CT
Chuck Thompson
Thu, Oct 28, 2021 6:51 PM

In an important decision from the 2nd Circuit today, the panel upheld some laws adopted by NYC to address the effect of the pandemic on lessees, but reversed the lower court as to a provision that prevented landlords from ever pursuing a lease guarantor for lost rents during the 16 month period of the effective period of the law.  The panel concluded that the Plaintiffs had pled sufficient facts to overcome their legal burden in pursuing the claims and seemed to rely primarily upon the failure of the law to "means" test or otherwise test the ability of the lessees to pay or the guarantors to pay or to evaluate the basis for the claims of inability to pay rents.  I skimmed it so may be missing something or misinterpreting, so the case is
20-4238https://www.ca2.uscourts.gov/decisions/isysquery/d729f3f1-5649-4bef-afa6-cc06af979a1f/1/doc/20-4238_complete_opn.pdf#xml=https://www.ca2.uscourts.gov/decisions/isysquery/d729f3f1-5649-4bef-afa6-cc06af979a1f/1/hilite/
Melendez v. City of New York

Charles W. Thompson, Jr.
Executive Director/General Counsel
P: (202) 466-5424 x7110
M: (240) 876-6790
D: (202) 742-1016
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In an important decision from the 2nd Circuit today, the panel upheld some laws adopted by NYC to address the effect of the pandemic on lessees, but reversed the lower court as to a provision that prevented landlords from ever pursuing a lease guarantor for lost rents during the 16 month period of the effective period of the law. The panel concluded that the Plaintiffs had pled sufficient facts to overcome their legal burden in pursuing the claims and seemed to rely primarily upon the failure of the law to "means" test or otherwise test the ability of the lessees to pay or the guarantors to pay or to evaluate the basis for the claims of inability to pay rents. I skimmed it so may be missing something or misinterpreting, so the case is 20-4238<https://www.ca2.uscourts.gov/decisions/isysquery/d729f3f1-5649-4bef-afa6-cc06af979a1f/1/doc/20-4238_complete_opn.pdf#xml=https://www.ca2.uscourts.gov/decisions/isysquery/d729f3f1-5649-4bef-afa6-cc06af979a1f/1/hilite/> Melendez v. City of New York Charles W. Thompson, Jr. Executive Director/General Counsel P: (202) 466-5424 x7110 M: (240) 876-6790 D: (202) 742-1016 [facebook icon]<https://www.facebook.com/InternationalMunicipalLawyersAssociation/>[twitter icon]<https://twitter.com/imlalegal>[linkedin icon]<https://www.linkedin.com/company/international-municipal-lawyers-association-inc./> [logo]<https://imla.org/> 51 Monroe St. Suite 404 Rockville, MD, 20850 www.imla.org<http://www.imla.org/> Plan Ahead! IMLA's 2022 Mid-Year Seminar<https://imla.org/seminars/>, April 8-11, 2022 in Washington, D.C.! IMLA's 2022 Annual<https://imla.org/annual-conference/> Conference, October 19-23, 2022 in Portland, OR! Check out our On-Demand webinar library<https://netforum.avectra.com/eweb/shopping/shopping.aspx?site=imla&webcode=shopping&cart=0&shopsearchCat=Merchandise&productCat=Webinar> with 100+ webinars at your fingertips.