Covid-19

The payment of commercial rents during successive lockdown periods is an issue that has given rise to numerous disputes.

Arguments based on force majeure, unforeseeability or non-performance, often used by lessees as a justification for not paying the rent, had been dismissed in the majority of court decisions handed down on this subject.

On January 20, 2021, the enforcement judge of the Paris Judicial Court opened up another way based on the “loss of the leased property”.

Law No. 2020-1525 of December 7, 2020 on the acceleration and simplification of public action (often referred to under its French acronym “ASAP” Law) has extended until December 31, 2021 a number of derogations that adapt French legal provisions governing distressed companies to the COVID-19 health crisis.

The adoption of this Law provides the opportunity to recall the various measures that remain applicable to date.

The closure of many companies since the first lockdown in March 2020 and the resulting economic slowdown have caused high tensions between lessors and lessees of commercial premises. Some tensions escalated to disputes, some of which have already been brought before French courts.

Law No. 2020-1379 of November 14, 2020 authorizing the extension of the state of health emergency and introducing various measures to manage the health crisis (the “Law”) has supplemented the measures taken as early as in March 2020 by the French Government concerning the performance of commercial leases agreements.

In order to deal with the economic impact of the “second wave” health crisis, two Decrees amending the standard short-time work scheme on the one hand and the long-term short-time work scheme on the other hand were published on October 30, 2020.

What are the new measures laid down by these Decrees?

In a Q&A posted on its website and updated on November 17, 2020, the French Ministry of Labor provides details on teleworking in the context of the “second wave” of the COVID 19 pandemic.
While in the previous versions of the health protocol telework was “recommended”, it must, since October 29, 2020, be generalized for all activities that allow it.

Decree No. 2020-925 of July 29, 2020 extends until November 30, 2020 the rules that eased the procedures governing the deliberations of shareholders’ meetings.

This provides the opportunity to review the temporary and exceptional derogations set up on the basis of Law No. 2020-290 of March 25, 2020 to secure the internal operation of companies through the adaptation of the rules governing the holding and deliberations of shareholders’ meetings to the health measures imposed by COVID-19.