Force majeure & COVID-19

[xylene]

I'm curious what you think is amiss and what you think a UK lawyer could do about it?

I am not versed in UK law but I was under the impression that legal protections for those made "redundant" were fairly substantial.

I don't believe that impacts the landlord, nor did I say that.

He should get a legal consult simply given the complexity of his situation and his immigration status. This was a substantial job for a multinational.

 

[PayrollHRGuy]

I am not versed in UK law but I was under the impression that legal protections for those made "redundant" were fairly substantial.

I don't believe that impacts the landlord, nor did I say that.

He should get a legal consult simply given the complexity of his situation and his immigration status. This was a substantial job for a multinational.

But the apartment isn't in the UK.

 

[Zigner]

But the apartment isn't in the UK.

No, but the employer is which makes xylene think there may be some protections afforded the OP. The OP would be wise to discuss this with an attorney there.

 

[LewisBoy]

For the OP: Why do you feel the LL should be left holding the bag for this? I understand that this puts you in a very difficult position, but the operative word there is "you".

I don't, and I am keen to minimize the LL losses as much as possible and work with them to get a new tenant. However the simple reality is that I won't be able to afford rent after July, and would very much like to know what legal basis I would have to break the lease with as little financial penalty as possible - such as this clause.

 

[LewisBoy]

I suggest you contact a lawyer versed in US and UK law. Something seems amiss here.

Thank you for replying - as my rental contract is a personal one with this private LL, I've no reason to believe that any UK lawyer or court would have jurisdiction.

 

[LewisBoy]

If you tell the landlord in writing now at least the LL can begin to show it. your LL is going to be in the same boat as many other landlords are now , with tenants who cant pay, nicely remind the LL that you regret this has happened but it is possible the unit could be re rented with no vacancy loss and will do your best to leave every thing clean ( windows, walls , insides of closets and cabinettes stove oven fridge tub sinks light fixture glass ETC. Make sure you take photos of how nice and clean you leave it

Thank you for the advice. Yes, I agree that open conversations about the situation are very much the best course initially, but should the LL decide to try and enforce the full term of the lease, and assuming in this climate he cannot re-lease within 6-9 months, is there any legal recourse for me in the Force Majeure clause.

Thank you.

 

[Zigner]

The LL has to make a reasonable effort to re-rent the place. He can't just let it sit there accruing unpaid rent.
To address another point, though: Once you're in the UK, how does it matter if you don't pay?

 

[Taxing Matters]

I am not versed in UK law but I was under the impression that legal protections for those made "redundant" were fairly substantial.

They do have redundancy rules in the UK. But the general rule most nations follow, including the U.S. and UK, is that for the most part the employment laws that apply are the laws where the employee is performing the work, not where the company headquarters is located. Moreover, the usual way a UK company would operate an office in the U.S. is to create a separate U.S. subsidiary for that, in which case the OP would be employed by a US company, not a UK one.

 

[LewisBoy]

They do have redundancy rules in the UK. But the general rule most nations follow, including the U.S. and UK, is that for the most part the employment laws that apply are the laws where the employee is performing the work, not where the company headquarters is located. Moreover, the usual way a UK company would operate an office in the U.S. is to create a separate U.S. subsidiary for that, in which case the OP would be employed by a US company, not a UK one.

This is exactly the case - I am (was) employed by a US company with a UK parent. Unfortunately, the UK office is also closing.

 

[commentator]

would the verbiage concerning "epidemics" be appropriate to mention here? I think we're sort of like, having an epidemic which has greatly affected the OP's circumstances. Pandemic, epidemic, not a whole lotta difference in my opinion.

 

[adjusterjack]

I don't, and I am keen to minimize the LL losses as much as possible and work with them to get a new tenant. However the simple reality is that I won't be able to afford rent after July, and would very much like to know what legal basis I would have to break the lease with as little financial penalty as possible - such as this clause.

You have no "legal" basis to break the lease without financial penalty. The force majeure clause applies only to the landlord, not you.

 

[LewisBoy]

The LL has to make a reasonable effort to re-rent the place. He can't just let it sit there accruing unpaid rent.
To address another point, though: Once you're in the UK, how does it matter if you don't pay?

I guess I'm just trying to do the right thing

You have no "legal" basis to break the lease without financial penalty. The force majeure clause applies only to the landlord, not you.

Thank you - this was my interpretation, that that the FM was only one way.

 

[LewisBoy]

would the verbiage concerning "epidemics" be appropriate to mention here? I think we're sort of like, having an epidemic which has greatly affected the OP's circumstances. Pandemic, epidemic, not a whole lotta difference in my opinion.

I understand that this (COVID) would certainly qualify as a FM event that would allow them to terminate our lease immediately. As it's written is appears to be one-way in the LL favor.

 

[Taxing Matters]

would the verbiage concerning "epidemics" be appropriate to mention here?

No. The force majeure clause in the lease, as written, only acts to relieve the landlord of responsibility in the event the listed circumstances prevent the landlord from meeting its end of the bargain. Even if the clause applied to both, the problem is that the pandemic is not directly interfering with the OP's ability to pay the rent. Rather the pandemic has hurt the OPs employer's business and as a result of a business downturn the OP lost his job. Getting fired because the employer is having economic trouble is not something that would trigger a force majeure provision.

 

[LewisBoy]

No. The force majeure clause in the lease, as written, only acts to relieve the landlord of responsibility in the event the listed circumstances prevent the landlord from meeting its end of the bargain. Even if the clause applied to both, the problem is that the pandemic is not directly interfering with the OP's ability to pay the rent. Rather the pandemic has hurt the OPs employer's business and as a result of a business downturn the OP lost his job. Getting fired because the employer is having economic trouble is not something that would trigger a force majeure provision.

Thanks for the comments. However, I'm not sure how being made redundant due to the pandemic with no opportunity to work (legally) would not be considered "directly interfering with the OP's ability to pay the rent". What other avenues would be available?

It's an interesting point as, in general, FM clauses (when applicable to both parties) do not generally permit financial or market changes (such as being made unemployed) from being relevant. However, in this particular extreme and globally unforeseen epidemic, where the rate of unemployment globally is accelerating at rates not seen in history, I'm not sure how a court could not consider this as part of FM provision.

Interested in this part as a general point rather than perhaps how it pertains to my individual situation.