by Ron Holmes There is no doubt, at least from our perspective, the COVID-19 pause is taking its toll on commercial real estate development. The exceptions appear to be single-family lot development and single-family residential construction, both of which continue at a strong pace. I expect the pause to continue until the capital markets rebound …
by Ron Holmes – As I sit and ponder the legal fallout of COVID-19, several gnarly legal issues float through my brain (and, as it turns out, those of other legal ponderers). Below, I will address on a broad basis three of my favorites. Impossibility of Performance as a Defense Performance of a contract may …
by Ron Holmes In making a PPP application, the applicant certifies that the applicant in good faith believes there is an economic necessity for the funds. There have not been any definitive guidelines on what constitutes “economic necessity.” As we had hoped (expected would be too strong a word), the SBA has now provided guidance. …
Business Expenses Paid with PPP Loan Funds May Not Be Deductible On April 30, 2020, the IRS issued Notice 2020-32 which provides that business expenses otherwise deductible will not be deductible if the Payroll Protection Program (PPP) loan used to pay such expenses is partially or completely forgiven. This makes business planning even more difficult. …
Reducing Employer Litigation Risk Post Stay-At-Home Orders With Governor Abbott’s most recent press conference (April 27, 2020), the stay-at-home order has generally been lifted (and overrides local stay at home orders) and it appears businesses are closer to being allowed to fully reopen. While this may mean that employers can begin requiring employees to be …
Will COVID-19 Excuse Contractual Nonperformance? The first step in answering this question is to look at your contract and determine if it contains a force majeure provision. A force majeure provision will excuse a party from nonperformance of a contractual obligation when the nonperformance is caused by unforeseen circumstances. Whether a party will be excused …
by Ron Holmes. The London Interbank Offered Rate (LIBOR) has been the go-to reference rate for trillions of dollars in real estate secured loans, and other loans. In the real estate industry, it is “the” alternative index rate for floating rate loans. That is changing. As a result of the rate rigging scandal that surfaced …
By Ron Holmes Condominium construction defect litigation initiated by a condominium owner association can almost be expected. Typically, the COA sues on behalf of all unit owners for collective damages rather than the unit owners suing for their individual damages. The Texas legislature has created a platform for relief from construction defect litigation brought …
30 Consecutive Years Ron Holmes has again received the prestigious AV Preeminent Rating in 2019 from the nation’s leading attorney review organization, Martindale Hubbell. 2019 makes the 30th consecutive year that Mr. Holmes has been awarded an AV rating. Martindale-Hubbell Peer Review Ratings is a peer review system with a history that spans more than …
By Ron Holmes Brian has been with the Firm since March 2000, which grants him the Longevity Award at Holmes Firm PC (other than yours truly). Brian practices in the real estate arena, and his practice includes horizontal and vertical development, sales and acquisitions, investing, leasing, condominium associations, etc. This spotlight is on Brian’s leasing …