While the severity and duration of the coronavirus (COVID-19) crisis remains unclear, its impact on businesses is at the least unprecedented and extraordinary. We are monitoring its impact on the financial services industry and will provide updates on important developments to help you stay informed. To make sure you remain compliant as you continue to maintain your operations contact us for more information.
Latest News and Analysis
A number of states have tolled the statutes of limitations on legal actions in response to COVID-19.
On March 19, Connecticut Gov. Ned Lamont entered Executive Order No. 7G suspending “all statutory (1) location or venue requirements; (2) time requirements, statutes of limitation or other limitations or deadlines relating to service of process, court proceedings or court filings; and (3) all time requirements or deadlines related to the Supreme, Appellate and Superior courts or their judicial officials to issue notices, hold court, hear matters and/or render decisions. . .” In addition, EO No. 7G suspended “Non-Critical Court Operations.”
By order of the Supreme Court of New Hampshire “[d]eadlines set forth in court rules, court orders, statutes, ordinances, administrative rules, administrative orders or otherwise that are set to expire between March 16 and April 6, 2020 are hereby extended to April 7, 2020. Statutes of limitations and statutes of repose that would otherwise expire during the period between March 16 and April 6, 2020 are hereby extended to April 7, 2020.” A copy of the order is available here.
The Iowa Supreme Court announced a toll on statutes of limitations in a March 17 order regarding court procedures. According to a March 23 operations summary from the Iowa Judicial Branch: “The March 17th order is intended to toll the statute of limitations or similar deadline for commencing an action in district court by 48 days. Tolling means you add that amount of time to the statute of limitations. So, for example, if the statute would otherwise run on April 8, 2020, it now runs on May 26, 2020 (48 days later).” The Judicial Branch Operations Summary is available here.
In Louisiana, Proclamation Number JBE 2020-30 tolled the statutes of limitations “at least until Monday, April 13, 2020.” All other deadlines in all courts were also “suspended” to April 13.
On March 13, the U.S. District Court for the Middle District of Louisiana entered Administrative Order 2020-1 under which “[p]rescriptive, preemptive and statute of limitation deadlines are hereby interrupted until April 13, 2020.”
On March 13, the Supreme Judicial Court of Massachusetts issued Standing Order 2-20 which tolled all statutes of limitations from March 17 through April 21, 2020. “Unless otherwise ordered by a judge in a specific case, all deadlines set forth in statutes or court rules, standing orders, or guidelines that would otherwise expire before April 21, 2020, are extended to that date.” In addition, orders after an adversarial hearing before March 17, which are set to expire before April 21, 2020, “shall remain in effect until the matter is rescheduled and heard.” The standing order is available here.
On March 17, the New Jersey Supreme Court ordered that “[i]n the computation of time periods under the Rules of Court and under any statute of limitations for matters in all courts, for purposes of filing deadlines, March 16 through March 27, 2020 shall be deemed the same as a legal holiday.”
On March 20, New York Gov. Andrew Cuomo tolled the statute of limitations for “any legal action, notice, motion or other process” from March 20, 2020 to April 19, 2020. Executive Order 202.8 is available here.
HB 197 passed both chambers of the Ohio legislature on March 25. A provision tolls causes of action “set to expire between March 9, 2020, and July 30, 2020” in civil cases “as provided under any section in Chapter 2305. of the Revised Code, or under any other provision of the Revised Code that applies to the cause of action.”
On March 16, the Oklahoma Supreme Court entered Order SCAD No. 2020-24 which “extended” the statute of limitations in “any civil case” for 30 days from the date of the order. In addition, the order also suspended “all deadlines and procedures whether prescribed by statute, rule or order in any civil, juvenile or criminal case,” subject to constitutional restrictions, for 30 days from the date of the order and “applies to appellate rules and procedures for the Supreme Court, the Court of Criminal Appeals, and the Court of Civil Appeals.”
On March 16, the Supreme Court of Pennsylvania issued an order allowing individual judicial districts to “suspend time calculations for the purposes of time computation relevant to court cases or other judicial business, as well as time deadlines, subject to constitutional restrictions.” Both the Commonwealth Court and the Superior Court have since issued orders suspending or tolling various filings. Please refer to the Unified Judicial System’s website for these orders.
The Supreme Court of Tennessee entered an order suspending non-essential, in-person proceedings and extended deadlines set forth in court rules, statutes, and administrative rules, including statutes of limitations, that are set to expire during the period from March 13 through May 5, 2020, through May 6, 2020. Deadlines, statutes of limitations, and statutes of repose that are not set to expire during the period from March 13, 2020, May 5, 2020, are not extended or tolled by this order. A copy of the order is available here.
The U.S. District Court for the Northern District of Texas entered Special Order No. 13-5 on March 13, under which “[a]ll deadlines are suspended and tolled for all purposes, including the statute of limitations, from today through May 1, 2020.”
On March 16, the Chief Justice of the Supreme Court of Virginia entered an order declaring a judicial emergency in the district and circuit courts, stating “all deadlines” are “hereby tolled and extended, pursuant to Va. Code § 17.1-330(D),” for a period of 21 days. “This order tolls and extends the time limit for filings related to appeals under Part 5 of the Rules of Court, including but not limited to the deadline for filing the notice of appeal under Rule 5:9 and all filing deadlines pertaining to transcripts and written statements of fact as set forth in Rule 5:11, and for filing the petition for appeal under Rule 5:17.
The tolling and extension referenced in the March 16 order applies to all filings related to appeals to the Court of Appeals that are filed in a circuit court. All deadlines in the Court of Appeals that run from the filing of the record in that court remain unaffected; however, parties remain free to seek extensions of time in the Court of Appeals.” The order is available here.
We are continuing to review orders, legislation, and proclamations and expect this list to grow.
Alabama Governor Authorizes Remote Notary Services
In response to the COVID-19 emergency, Alabama Governor Kay Ivey issued a proclamation authorizing certain notaries to notarize signatures through videoconferencing programs. The complete order can be viewed here.
Texas Supreme Court, Court of Criminal Appeals Issue Succession of Emergency Orders
The First Emergency Order (March 13) requires each court to avoid risk and gives each judge the discretion to manage their courts including using remote appearance and modifying deadlines and rules. The Second Emergency Order (March 17) clarifies that child possession schedules under existing court orders are not affected by a disruption in school. The Third Emergency Order (March 18) amends the First Order in reaction limitations on social gatherings and provides guidance on essential versus non-essential proceedings. The Fourth Emergency Order (March 18) stops and modifies evictions.
On March 20, a Fifth Emergency Order was issued concerning the tolling of deadlines in connection with attorney disciplinary and disability proceedings. This order supplements, not amends prior orders and is retractive to March 13, 2020 until May 8, 2020.
In addition to emergency orders, the Office of Court Administration (OCA) issued guidance reports. The collective reports and orders may be found in the March 19th report. Although the orders lay down a framework for courts to operate, each court has discretion to use the broad authority issued under the orders. While the OCA requested courts notify it of closures to post to the public, such is not mandatory and can’t be relied upon.
Courts may suspend or modify deadlines.
Civil courts may modify the statute of limitations.
Courts may require or allow remote appearance by participates such as attorneys, court reporters, witnesses.
No remote appearances by juries.
Courts may consider evidence of sworn statements made out of court or sworn testimony given remotely.
Courts may conduct proceedings away from the court’s usual location.
Require participants to notify the court of potential exposure or illness.
Courts may take other reasonable action to avoid exposure of COVID-19.
Essential versus Non-essential proceedings
The 3rd Order prohibits judges from conducting non-essential proceedings that would be contrary to the most restrictive local, state, or national directives regarding maximum group size.
No limitation on remote appearances.
Governor’s office orders limitations on gatherings of more than 10 people; therefore, courts should not schedule any in-person proceedings that would cause more than 10 people.
Examples of essential functions: criminal magistration proceedings, CPS removal hearings, temporary restraining orders/temporary injunctions, juvenile detention hearings, family violence protective orders.
The fourth order prohibits a trial, hearing, or other proceeding in an eviction to recover possession of residential property under Chapter 24 of the Property Code and Rule 510 under the Texas Rules of Civil Procedure.
The prohibition in effect until April 26, 2020.
The Order permits new filings of eviction cases, but prohibits issuance and service of citation until after April 19, 2020.
Such proceeding may move forward provided all the following conditions are met:
Plaintiff files a “sworn complaint for forcible detainer for thereat to person or for cause;
The corrupt determines the facts and ground for evictions stated in the complaint, under oath with personal knowledge, taken as true, show that the actions of the tenant, or the tenant’s household members or guest, pose an imminent threat of (1) physical harm to the plaintiff, the plaintiff’s employees, or other tenants, or (2) criminal activity; and
The court signs an order stating procedure for the case to proceed.
Remote Proceedings – New Tool
The Office of Court Administration (OCA) procured licenses from Zoom to permit any judge in the state to host and provide public access to the proceedings. The tool is free app that can be downloaded to a cell, tablet or computer. Judges can then publish the electronic proceeding to YouTube whereby meeting requirement of public access because courts may conduct proceedings away from their normal location.
Mass. District Court Closes Courthouse
On March 23, the U.S. District Court for the District of Massachusetts closed its courthouse located in Springfield, Mass. because an employee of the clerk’s office reported having symptoms consistent with COVID-19. As a result, all operations at the courthouse were closed pending further order of the Court. The order is available here.
NY State Courts Prohibits New Filings Except in Specified Matters
On March 22, the New York State Administrative Office of the Courts prohibited county clerks or the courts from accepting for filing “papers . . . in any matter” except the following:
- – arraignments
- – bail applications, reviews and writs
- – temporary orders of protection
- – resentencing of retained and incarcerated defendants
- – essential sex offender registration act (SORA) matters
- – child protection intake cases involving removal applications
- – newly filed juvenile delinquency intake cases involving remand placement applications, or modification thereof
- – emergency family offense petitions/temporary orders of protection
- – orders to show cause
- – stipulations on submission
- – Mental Hygiene Law (MHL) applications and hearings addressing patient retention or release
- – MHL hearings addressing the involuntary administration of medication and other medical care
- – newly filed MHL applications for an assisted outpatient treatment (AOT) plan
- – emergency applications in guardianship matters
- – temporary orders of protection (including but not limited to matters involving domestic violence)
- – emergency applications related to the coronavirus
- – emergency Election Law applications
- – extreme risk protection orders (ERPO)
- – applications addressing landlord lockouts (including reductions in essential services)
- – applications addressing serious code violations
- – applications addressing serious repair orders
- – applications for post-eviction relief
- – any other matter that the court deems essential
The order was immediately effective and will remain effective until further order. It applies to both paper and electronic fillings. A copy of the order is available here.
Ohio Closes Non-Essential Businesses, Orders Persons to ‘Stay at Home’
On March 22, the Ohio Department of Health issued a “Stay at Home Order.” The order directs all “individuals currently living” in Ohio to stay at home except under limited Circumstances. The order also requires “all businesses and operations” within Ohio to “cease all activities within the State except for “Minimum Basic Operations.”
Minimum Basic Operations are:
The minimum necessary activities to maintain the value of the business’s inventory, preserve the condition of the business’s physical plant and equipment, ensure security, process payroll and employee benefits, or for related functions.
The minimum necessary activities to facilitate employees of the business being able to continue
While engaged in Minimum Basic Operations, persons must comply with Social Distancing Requirements. Social Distancing Requirements include maintaining six foot distance from other individuals, frequent hand washing with soap and was for twenty seconds or the use of had sanitizer, “covering coughs or sneezes (into the sleeve or elbow, but not hands),” regular cleaning of “high touch surfaces,” and no hand shaking. The order is available here.
New Jersey Imposes Statewide Remain at Home Order – Shutters Specific Businesses
On March 21, New Jersey Gov. Phil Murphy signed Executive Order 107 imposing restrictions on the operation of businesses and individuals located within the state.
EO-107, which became effective at 9 p.m. the same day, requires those living in New Jersey to “remain home or at their place of residence” with limited exceptions. Among the exceptions is “reporting to, or performing, their job.” However, EO-107 also shutters “the brick-and-mortar” premises of all non-essential “retail businesses.” The order also closes “personal care services” such as beauty salons and spas. “Social clubs associated with community service organizations,” are also ordered closed, unless they provide “medically necessary or therapeutic services.”
The order does not close other service providers, such as law firms and collection agents, but does curtail office operations to only “essential operations.” Businesses that are not ordered closed “must accommodate their workforce, wherever practicable, for telework or work-from-home arrangements.” And to the extent that a business has employees “that cannot perform their functions” remotely, a business “should make best efforts to reduce staff on site to the minimal number necessary to ensure that essential operations can continue.”
A copy of EO-107 is available here.
Ohio Supreme Court Recommends Temporary Stay of Garnishments
On March 20, the Supreme Court of Ohio issued “Guidance to Local Courts” recommending they “temporarily stay the filing and enforcing of any garnishment actions or orders.” A copy of the bulletin is available here.
Massachusetts Suspends Most Trials and Hearings
On March 17, the Supreme Judicial Court of Massachusetts issued Standing Order 3-20 effectively postponing all criminal and civil trials set to commence between March 17 and April 17 to “a date no earlier than April 21, 2020.” The order permits trials in civil matters “otherwise than in person” by agreement of the parties and the court. The order specifically prohibits in-person proceedings except for specified emergency matters.
Texas Department of Banking
The Texas Department of Banking issued guidance that regulated entities should consider under the COVID-19 crisis. In Industry Notice 2020-03, issued March 16, the regulator stated it “trusts our financial institutions will work with their customers in a safe and sound manner to help the borrowers recover and provide an opportunity to ultimately repay their debt” and “supports prudent measures taken by financial institutions to help customers with their needs.” A copy of the guidance is available here.
On March 9, the FDIC issued guidance to financial institutions on how to assist customers and members affected by the coronavirus. The FDIC continues to provide updates about the impact of COVID-19 on the banking industry. The FDIC Coronavirus (COVID-19) Information for Bankers and Consumers home page is available here.
The CDC COVID-19 home page provides resources for businesses and employers and offers advice on keeping commercial, community and living spaces safe. The CDC COVID-19 home page is available here.