Haynes Boone Partner Emilie Cooper talked with Law360 about how issues caused by the COVID-19 pandemic – including expiration of assistance under the CARES Act — are likely to usher in a wave of real estate litigation soon.
Here is an excerpt:
Experts say tenants are likely to have more difficulty making rent in July and August, given that the Paycheck Protection Plan assistance from the Coronavirus Aid, Relief and Economic Security Act expired at the end of June. But commercial landlords are also in the tricky position of being restricted by their lenders.
Here, Law360 looks at three things to watch for as COVID-19 litigation looms.
Expiration of PPP Loans Could Accelerate Litigation
While many landlords and tenants have been able to reach agreements over the last couple months, many of those agreements have worked because of the PPP loans from the CARES Act. With those loans now expired, many of the agreements may need to be modified, lawyers say.
"I've been monitoring it and have seen an uptick," said Emilie Cooper, a partner at Haynes Boone LLP. "People come to the point where they're unable to make a deal and are saying, 'Let's move forward with other recourse.'"
To read the full article, click here. (Subscription required)