Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: March 8, 2021
The Firm
201-896-4100 info@sh-law.comCommercial evictions in New Jersey are poised to increase under new orders issued by the New Jersey Supreme Court. While most eviction proceedings were placed on “pause” in light of COVID-19, commercial landlords and lenders may now proceed with certain landlord/tenant actions and post-judgment actions in commercial foreclosures.
In response to the ongoing COVID-19 public health emergency, the Supreme Court of New Jersey has authorized the temporary suspension of landlord/tenant trials, subject to a few narrow exceptions, since March 16, 2020. In July 2020, the New Jersey Supreme Court issued an order that allowed commercial or residential landlords to make an application for an eviction trial in certain emergency situations, including if a tenant was destroying the property or engaged in illegal activity. While commercial foreclosure trials have continued during the pandemic, the courts have withheld post-judgment action, including the issuance of writs of possession.
While these restrictions have provided welcome relief for commercial tenants, they have made it difficult for landlords to regain possession of commercial properties, even when tenant businesses are no longer operational. Lenders have also been left in limbo with regard to whether they may proceed with foreclosures.
In a Notice to the Bar, dated February 5, 2021, the New Jersey judiciary announced that, effective February 15, 2021, courts will resume post-trial activity, including issuance of writs of possession, for commercial foreclosure matters.
The announcement is likely unwelcome news for commercial property owners that are behind on mortgage payments. At the same time, it is a necessary step towards returning the legal system to its pre-pandemic operating status. By allowing actions to proceed through the legal process, it will also bring clarity for borrowers and lenders.
In a second Notice to the Bar, dated February 5, 2021, the New Jersey Supreme Court clarified and expanded the circumstances in which a landlord may apply by Order to Show Cause for a trial in a commercial landlord/tenant matter.
Under the Order, a commercial landlord filing an Order to Show Cause must still allege emergent circumstances, and the basis of the landlord/tenant action generally can’t be nonpayment of rent. However, emergent circumstances can now exist where the tenant has vacated the property; the tenant’s business is not operating and will not resume operations; or the commercial landlord is facing foreclosure or a tax lien.
In such cases, the court will evaluate the application and determine whether emergent circumstances exist, and a hearing will be held. If the court finds that emergent circumstances exist, the commercial tenant will be notified, and a trial will be scheduled. After that trial, if the commercial landlord prevails, judgment will be entered, and a warrant of removal can be issued.
The Orders will not lead to a rash of commercial evictions overnight. However, the easing of restrictions does mean that parties to landlord/tenant and commercial foreclosure actions may need to shift their legal strategies.
As the COVID-19 pandemic continues to evolve and we slowly approach the “new normal,” additional orders are likely. We encourage lenders/borrowers and tenants/ landlords to stay up-to-date on legal developments at both the state and local level and contact experienced counsel to determine how you may be impacted.
If you have any questions or if you would like to discuss the matter further, please contact me, Chris Dzwilewski, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!