The Coronavirus (Scotland) (No2) Bill was passed on 20 May, gained royal assent on 26 May and came into force 27 May. This will be known as The Coronavirus (Scotland) (No. 2) Act.
Why do we need another Act?
Good morning.
Please find our summaries of last week’s civil decision of the Court of Appeal for Ontario.
On April 20, 2020, Massachusetts Governor Charlie Baker signed legislation suspending evictions of many residential and commercial tenants as well as halting the foreclosure of most residential properties. The new law, Chapter 65 of the Acts of 2020, “An Act providing for a Moratorium on Evictions and Foreclosures During the COVID-19 Emergency,” takes effect immediately and will remain in place until the earlier of August 18, 2020 or 45 days after Governor Baker lifts the Coronavirus Disease 2019 (COVID-19) emergency declaration.
The COVID-19 pandemic and the drastic measures taken in an effort to mitigate its adverse impact have sent shock waves throughout the US and global financial systems. COVID-19 and measures including travel bans, shelter-in-place orders and widespread business closures have caused precipitous changes in customer spending and demand, supply chain disruptions, sharp declines in revenue and other operational challenges across a wide range of economic sectors. Businesses worldwide now confront unprecedented and mounting challenges and distress.
In these unprecedented times there has been much discussion and focus in the property community of the effect of tenants unable to operate their businesses and the risks of widescale insolvencies.
As the COVID-19 pandemic marches on, more homeowners than ever are seeking assistance from their lenders.
When the Coronavirus Act 2020 (the "Act") received royal assent on 25 March 2020, commercial tenants across the country were afforded some relief.
Landlord and tenant relationships are likely to come under strain as tenants experience financial difficulties due to the COVID-19 pandemic. For tenant companies such financial difficulties may result in a tenant being placed in examinership, or ultimately in the appointment of a liquidator or receiver. An insolvency event generally constitutes an event of default in a commercial lease.
At the end of March, the Government introduced measures providing a moratorium on evictions for commercial tenants for non-payment of rent until 30 June 2020.
The troubles possibly faced by WeWork, the shared office space company, were well documented long before the global impact of COVID-19 was felt. WeWork, unlike other shared office companies, tends to use a more inherently risky business model, taking long leases and carving them up into short-term flexible letting arrangements. Whilst some shared office companies take on geared leases, passing up a percentage of revenue, and thus sharing the risk and reward, WeWork are understood to have a larger holding of fixed rent leases.