New Jersey Law Journal
February 11, 2021
Sills Cummis’ Joshua Howley and
Michael Geraghty were interviewed for a New Jersey Law Journal article
about two New Jersey Orders dated February 5, 2021 – one involves the commencement
of commercial landlord-tenant trials in certain circumstances and the other
involves commercial
foreclosure trials.
As seen in this article, “On
Monday, the New Jersey judiciary issued an order expanding and clarifying
landlords’ ability to obtain trials in commercial landlord-tenant matters. And
on the same day, the judiciary announced that state courts will resume issuing
postjudgment writs of possession in commercial foreclosure cases.”
The article later states, “The
order will allow certain commercial landlords to proceed, such as the owners of
properties housing restaurants that lost business due to COVID-19 and were
unable to keep going based only on takeout orders, said Michael Geraghty, a
lawyer at Sills Cummis & Gross in Newark who handles commercial
landlord-tenant issues. In some cases, property owners complain to him that
their tenant seems to have vacated the premises, but they can’t take possession
of it without a court order, he says.
“‘It’s a help to that category
of landlord who are sitting with tenants who have stopped conducting business,’
said Geraghty.
“However, the landlord-tenant
order won’t help property owners whose commercial tenants remain in business
but don’t pay rent, Geraghty said.”
The article concludes, “Joshua
Howley, another Sills Cummis lawyer who handles commercial foreclosures, said
the order concerning foreclosures was an attempt to address discrepancies in
practices employed around New Jersey. He said some counties have not conducted
sheriff’s sales, due to confusion over proper procedures, during the pandemic.
“But even though the order
should allow commercial lenders to carry out foreclosures to their conclusion,
Howley doesn’t anticipate any big bump in commercial foreclosures as a result.
“‘I don’t view the notice to the
bar opening the floodgates on foreclosures.’ The order ‘will provide clarity
for all the involved parties—lenders, borrowers and sheriffs—that it is OK to
proceed. It will allow commercial foreclosures to head to a conclusion. I don’t
think it’s good for anyone that commercial properties are in limbo,’ said
Howley.”