The shutdown of all “non-essential” businesses by the New York State and New York City governments due to the global coronavirus (COVID-19) pandemic has created an acute financial crisis for both commercial landlords and tenants.

On October 17, 2019, the United States Court of Appeals for the Second Circuit unanimously affirmed the judgment of the Bankruptcy Court that denied a motion filed by the debtor-landlord to sell the subject property (a downtown Manhattan loft building) “free and clear” of the possessory interests of statutory Loft Law tenants. The Loft Law tenants were represented by Warshaw Burstein. The Second Circuit’s Summary Order, in In re Bridge Associates of SOHO, Inc., confirmed that a landlord who has failed to comply with the Loft Law and legalize a building for residential use is barred from collecting any rent from, or seeking to dispossess, the tenants. This decision represents a major victory for the rights of Loft Law tenants. Litigation partner Bruce H. Wiener argued the appeal and Slava Hazin was on the Brief.