The COVID-19 pandemic has given otherwise busy businesspeople a lot of extra time on their hands. Some are home-schooling their children. Others are studying a new language. Some use the time to take courses to fulfill their continuing education requirements in fields such as architecture. Others focus on their businesses and their next chess move. Everyone is asking me what kinds of legal issues people are inquiring about. With attorneys, the No. 1 topic, given the state of the economy, is usually some variation on collections. It can range from $2,500 owed for unpaid consulting services to millions of dollars owed on a failed development deal with a back story spanning several years. Condominiums are talking about filing liens for common charges.
One of the most interesting things about the “Pandemic Pause” is that people can get as angry as they want at the people who owe them money, but the courts in New York City aren’t accepting new civil lawsuits yet. That forces people to think about whether they can work things out in some other way. At this moment, courts are taking new cases in upstate New York but not yet in New York City.
It is worth noting that this pause has changed the way we do business, perhaps forever. We have entered into the world of virtual communications, and there is no turning back. Almost immediately, it was embraced by the courts, which did not want litigants coming into court and spreading germs. As we wondered what the next step might be, we started to hear from the courts about scheduling motions via Skype from the comfort of one’s living room. While that is an amazing step forward, they have still not worked out the logistics of having a jury trial with social distancing.
The concept of the office also changed overnight. Some people working from home have decided they no longer need an office. Some employees are rebelling at the idea of returning to the office and would prefer to work from home.
Many clients are crowded in their apartments with spouses and children who are taking online courses. Now that the pandemic seems to be lifting slightly, they are starting to pick up where they left off. A court case I was working on was put on pause, and just recently, we had a conference call with the judge via Skype. The ability to have virtual court conferences is something new that has come out of the pandemic, which is probably here to stay to some degree. Even before the pandemic, there were an increasing number of “800” telephone conference calls.
Before the pandemic, a few clients were close to starting renovations. Once the pandemic hit, contractors were no longer allowed into buildings, not even to give estimates, and all activity stopped. Clients are now trying to get their contracts in order so that they can move forward quickly once buildings allow entry.
Some topics have come up in recent discussions. Homeowners may not realize that the contractors’ injured workmen can sue them and the co-op or condominium board for damages from their injuries, even though their employers have workers compensation. All of these need to be negotiated into the insurance policies and put in place before the project commences. There were questions about certain insurance provisions, and it has been nice to be able to discuss them with insurance brokers who are in their homes and in a calmer frame of mind than they might otherwise be in during the day at the office.
While real estate brokers may not be able to get into buildings to show apartments, others have had teams in masks and gloves videotaping them. There may not be a lot of closings, but some closings are occurring remotely, just like hearings in the courts. Even notarizing documents can be done online.
Rather than focusing on the economy and the things that are going wrong, try to use this time period productively. Dust off your business contracts and call your attorney to discuss, update and improve them. Several interior designers have called me about this, since they finally have some time to focus. It can help to be proactive in trying to address issues now before problems arise.
C. Jaye Berger
Law Offices C. Jaye Berger
110 E. 59th Street, 22nd Floor
New York, New York 10022
lawofficescjb@aol.com
212-753-2080
