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ARE YOU BEING SUED? ARE YOUR WAGES BEING GARNISHED? THERE IS HELP FOR YOU.
What is Wage Garnishment? If you have been sued by a creditor and a judgment was entered against you, that Creditor may contact your employer after obtaining a Court Order and hold back a portion of your pay check to be sent to that creditor.
By filing for a Chapter 7 Bankruptcy, that creditor will be prevented from holding back any more of your pay check. There is now an “automatic stay” that prevents any creditor to take action against you. Once your Chapter 7 Bankruptcy case is over, that debt will be discharged and the creditor can no longer hold back any monies from your pay check. If your wages are being garnished right now, do not wait, call 973-471-7676 to find out if Chapter 7 Bankruptcy is for you.
Covid-19 and the absence of a Force Majeure Clause in New Jersey Commercial Leases.
The Coronavirus (Covid-19) is causing tremendous strain on residential and commercial tenancies. Now more than ever it is important to understand the key terms of your lease agreements.
A “force majeure” clause is a common clause in commercial leases that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties prevents one or both parties from performing and fulfilling their obligations. Examples of force majeure trigger events include war, strike, riot, crime, plague, government actions, orders or laws. In the absence of a force majeure clause in New Jersey, parties to a lease are left with the common law contract doctrines of “impracticability,” “frustration of purpose” and “impossibility of performance.”
Impracticability
The Supreme Court of New Jersey in M.J. Paquet, Inc. v. NJ Dept. of Transportation found that the essence of this principle is that a party's performance under a contract is rendered impracticable by the occurrence of an event “the nonoccurrence of which was a basic assumption on which the contract was made.”
Frustration of Purpose
In Capparelli v. Lopatin, the New Jersey Appellate Division found that this Doctrine “deals with the problems that arise when a change in circumstances makes one party's performance worthless to the other, frustrating his purpose in making the contract. . . . The frustration must be so severe that it is not fairly to be regarded as the risks that the party invoking the Doctrine assumed under the contract.” The supervening event must fundamentally change the nature of the parties’ overall bargain.
Impossibility of Performance
This means that your contractual obligation is “objectively impossible” if the impossibility arises from the impossible nature of performance (as opposed to arising from the incapacity or fault of the promising party). In other words, the contractual obligation must be impossible because “the thing cannot be done” as opposed to the fact that a promisor “cannot do it” Duff v. Trenton Beverage Co., 3 N.J. 515 (1950).
The information in this article does not constitute legal advice. If you have any questions about managing the landlord-tenant relationship or the impact of COVID-19 on your business, or if you are a commercial landlord or tenant who needs assistance with restructuring your lease, please contact Jack Cilingiryan, Esq. at jack@cilingiryanlaw.com or call (973) 471-7676. Our office conveniently represents clients throughout New Jersey including Bergen County, Passaic County, Hudson County, and Middlesex County.
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