Dear Friends, Clients, and Colleagues:
As the near-global state of emergency arising from Covid-19 continues, people on Long Island, throughout New York State, and around the world are staying home, slowing down, and hitting “pause” while short-term plans and long-term contingencies are developed. We are fortunate to live in a society with sufficient technology and other resources to allow businesses and the courts to mitigate the disruption. Indeed, as people and companies pivot to meet emerging challenges, new opportunities have opened up for many.
Across the board, all reasonable courtesies will be extended, and short-term delays can be expected. Priority will be given to matters relating to emergency response and essential services. However, litigation and transactions are continuing, notwithstanding the state of emergency, and will continue even in the event of extended “social isolation.”
Both state and federal courts already rely primarily upon electronic filing, and there are existing procedures in many instances to accommodate remote appearances (and even remote testimony, where necessary). Circumstances will vary depending upon the cases and the individual judges assigned to each case. Both court systems are filled with talented individuals who take pride in their profession, understand the importance of what they do, and can be relied upon to ensure the continued stability and operation of the justice system. Discovery will be subject to practical difficulties while businesses and local governments are operating with restrictions and limitations, and civil jury trials will likely be delayed over at least the next couple months. However, cases will continue to move towards resolutions, and those seeking to make new filings will have access to the courts (with most deadlines tolled or extended).
Transactions will continue. New York State’s Technology Law has long recognized the validity of electronic signatures. (See NYS Technology Law 301, et seq.). Indeed, there are many entities in the essential services sectors that are rapidly transacting significant business in response to the current circumstances. Notably, New York State Executive Order 202.7 allowed for remote notary services, further facilitating remote operations. Where documents must be recorded or filed with government entities, there will be short-term practical delays. Currently, the Suffolk County Clerk is only accepting documents for recording by mail, and the County Nassau County Clerk’s office is fully closed but will presumably shift to a mail-only or electronic system at the earliest opportunity.
Briefly, for those interested, Article 2B of the New York State Executive Law gives the governor authority to declare a state of emergency for periods of up to six months, subject to extension. When the Governor declares a state of emergency, it triggers an obligation for the affected local governments, within fifteen days, to report to the State and, unless determined unnecessary, begin developing a local recovery and redevelopment plan. During a state of emergency, the Governor can suspend any state or local laws in intervals of thirty days, and take other appropriate responsive measures, subject to federal and state constitutional restrains.
Similarly, local governments (Counties, Towns, Cities, and Villages) can also declare their own local emergencies in intervals of thirty (30) days. These local emergency orders can include curfews; restrictions or prohibitions on the use and occupancy of buildings, or on traffic or public gatherings; and establishing emergency medical facilities. A local government may also suspend its own local laws in five day intervals.
Thus far, in a series of executive orders, Governor Cuomo has
- Directed all businesses to halt any ”in person workforce,” except that businesses may continue through “telecommuting or work from home procedures that they can safely utilize,” and “essential” businesses are not subject to the restriction (with a procedure for businesses that do not fall squarely into the essential category to apply to be recognized as “essential”) (Executive Orders 202.7 and 202.8).
- Tolled all statutes of limitations and court filing deadlines, as well as drivers license and motor vehicle registration expirations, until April 19, 2020 (Executive Order 202.8).
- Authorized remote notary services for persons “personally known to the Notary” or who can “present valid photo ID to the Notary during the video conference,” provided the person is present in New York State, and sends the notary a fax or .pdf copy the same day (and, where original ink-signatures are needed, the original may be delivered to the notary and notarized as of the date of initial signing within thirty days). (Executive Order 202.7)
- Directed state-regulated banks to grant 90-day hardship forbearances, and to temporarily cease charging ATM, overdraft, and late fees. (Executive Order 202.9).
- Temporarily authorized all licensed U.S. physicians to practice in New York State, regardless of their states of licensure. (Executive Order 202.5).
- Directed local governments to: (1) allow all non-essential personnel to work from home and otherwise restricting non-essential local government personnel to 50% office access; and (2) seeks approval from the State Health Department prior to issuing their own emergency declarations. (Executive Orders 202.4 and 202.5)
- Closed all schools until at least April 1, 2020, with all local school districts directed to develop “alternative instructional options” in anticipation of a longer full or partial shut-down. (Executive Order 202.4).
- Suspended or modified various regulations so as to streamline the development of emergency treatment and testing facilities, to allow for Covid-19 testing and swan collection by qualified non-physician and non-nurse staff, and to allow for more expansive tele-medicine. (Executive Orders 202 and 202.1)
- Authorized the State, its agencies, and others to enter into emergency contracts. (Executive Order 202).
The exercise of the government’s emergency powers necessarily pushes up against civil liberties and constitutional rights. As restrictions continue there will inevitably be challenges, and the courts will hear and address those challenges. Governments look to the law for the processes being used to address these emergent conditions, and we have a system of checks and balances to ensure that they stay within the law in doing so.
Business can continue to rely upon the law to ensure that the persons they are transacting business with are all playing by the same rules. Things will change, but they always do. Challenges breed ingenuity and innovation, and this is no different. Similarly, individuals can continue to rely upon the laws that protect them. Far from a free-for-all, existing consumer and employment protections continue, and new laws are being enacted to address these unique circumstances.
Be patient, be kind, and stay safe. We will all get through his together.
Yours,
Scott Kreppein