(as of April 4, 2020)

Kay Law’s chief concern is the well-being of its clients and staff members. As such, we are fully supporting public health recommendations to reduce the spread of COVID-19.

As of March 17, 2020, we implemented a “physical distancing” policy and we adopted phone conference calls and video meetings until this unprecedented threat to pubic health subsides. These policies and procedures will continue in effect until further notice.

If you are attempting to deliver or pick-up any item from our office, please see the instruction sheet posted on our outside door or please phone us at 519-579-1220 and we will instruct you.

As an “essential service” provider, we are fully committed to providing legal services to our clients during this public health crisis. We are here to help you and your business. Please phone or email us. (519-579-1220 or reception@kaylaw.ca)

We appreciate your patience and understanding as we work within policies and procedures that help reduce the spread of COVID-19. Our thoughts and prayers are with all of you and we wish you safety and health.

Thank you.

Yours very truly,
Kay Law Professional Corporation

Saturday, March 28, 2020

Kay Law Blog 5 - Covid-19 and Commercial Leases

Covid-19 and Commercial Leases

Mach 28, 2020

April 1, 2020, will undoubtedly be a historic commercial rent payment deadline, as all non-essential businesses have been shut down by the Covid-19 pandemic and the Ontario state of emergency.  "Social distancing" has become the new norm.

Commercial tenants have shut their doors and very few tenants have adequate cash flow reserves to fund their rent obligations.  

The vast majority of commercial leases do not adequately address what should occur in the event of a social distancing pandemic such as Covid-19 (an "Act of God/Force Majeure) and do not provide rent relief under such circumstances.  If landlords take the hard-line, declare an event of default and enforce their remedies, this will likely result in a vacant unit until a reasonable period after the pandemic (including any "second wave") is eradicated.

This is unprecedented and certainly not "business as usual". 

Commercial landlords and tenants (including their real estate advisors and lawyers) need to communicate with each other and think creatively to find a mutual solution.  The following article addresses some "blend and extend" strategies that can be used to provide temporary rent relief to tenants and also provide landlords with extended lease value: