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Bendett & McHugh P.C. COVID-19 Northeast Update
As an update to our recent alerts from the past few days relating to COVID-19 (attached) please find below a comprehensive state by state summary on the impacts we have been seeing across the Northeast.
As an update to our recent alerts from the past few days relating to COVID-19 (attached) please find below a comprehensive state by state summary on the impacts we have been seeing across the Northeast.
Connecticut:
Judge James W. Abrams, Chief Administrative Judge for Civil Matters, has issued an order to reschedule all foreclosure sales scheduled for March, April and May to June 6, 2020 to prevent a potential gathering of individuals at the auction site. Vesting dates have likewise been postponed to early June. More information on the postponed sale and vesting dates can be found in the attached Alert sent to our clients this morning. Please further note that other than the service and filing of the complaint and other pleadings (which can be filed electronically), all other judicial activity associated with a foreclosure or eviction action in Connecticut has been cancelled until further notice. This would include judgment hearings, trials, status conferences, hearings on motions (including motions for summary judgment) and mediations. Also, ejectments for eviction and ejectment matters are now stayed through May 1, 2020.
The below notice was posted on the Connecticut Judicial Website late on March 19, 2020. As you are aware, Connecticut has a strict foreclosure process (with a vesting date) and a foreclosure by sale process, through which foreclosure sales are typically scheduled for Saturdays. Per our earlier alert, foreclosure sales scheduled in March 2020 have been continued to mid-May. This directive has now been expanded and foreclosure sales scheduled for April 2020 and May 2020 have been continued to June 6, 2020. In addition, for judgments of strict foreclosure, where title is scheduled to vest in April 2020 and May 2020, the vesting dates have been postponed until early June. The first law day in those matters will be June 2, 2020, and the vesting date will depend on how many defendants there are, as defendants with subsequent interests are given law days on succeeding business days in the inverse order of their priority, with title to vest in the plaintiff after the running of the law days. We will update the exact vesting dates on a loan level basis. With regard to the vesting dates scheduled for this month, for which we have received postpone instructions from our clients, we have filed motions to postpone the same. We have had some difficulty in the courts granting our motions to postpone in these matters, and have been in contact with a senior employee at court operations who said she would assist. We will keep you updated on this issue on a loan level basis.
Please further note that other than the service and filing of the complaint and other pleadings (which can be filed electronically), all other judicial activity associated with a foreclosure or eviction action in Connecticut has been cancelled until further notice. This would include judgment hearings, trials, status conferences, hearings on motions (including motions for summary judgment) and mediations. Also, ejectments (“lock outs”) for eviction and ejectment matters continue to be stayed through March 27, 2020.
March 19, 2020: Consistent with the U.S. Department of Housing and Urban Development's recently enacted 60-day moratorium on foreclosures and evictions, the Court is hereby extending its previous Orders cancelling some foreclosure sales with the following Orders: ALL foreclosure sales previously scheduled to have occurred in April or May are hereby rescheduled to Saturday, June 6, 2020, with no appointed Committee to begin working on the sale (i.e. place foreclosure signs on properties, etc.) prior to May 1, 2020. The judgment in ANY foreclosure action in which the Court set a “law day” to run on any date in April or May is hereby amended with the first law day now set for June 2, 2020. There shall be an immediate stay of all issued executions and ejectments through March 27, 2020. Finally, all civil trials, trial management conferences, pre-trials, status conferences, J-ADR mediations and short calendars, arguable and non-arguable, have been cancelled until further notice. Per order of Hon. James W. Abrams, Chief Administrative Judge for Civil Matters.
Maine:
In Maine state courts, all in-person court events for civil, criminal and family matters, through May 1, 2020 have been cancelled as of March 13, 2020. As a result, all previously scheduled trials and hearings until May 1, 2020 will not occur. Foreclosure mediations are also cancelled through May 1, 2020. Foreclosure auctions conducted by the firm that are scheduled to take place in the coming days are being postponed for one week or cancelled as appropriate to prevent the congregation of groups of people in accordance with pandemic guidance. Moreover, proceeding with a sale in the current climate is likely to result in a sale with no attendance by third parties. Such a sale can easily be challenged as commercially unreasonable. On 3/17/2020 Maine Superior and District Courts have extended all unexpired deadlines by 49 calendar days.
The Federal District Court of the State of Maine has only cancelled all jury trials and jury selection. On 3/17/2020 Maine District court has likewise extended all unexpired deadlines by 49 calendar days.
Massachusetts:
Trial Court Departments were closed March 16, 2020 and March 17, 2020. The Trial Courts have now reopened but will only hear emergency matters until 4/6/2020, telephonic hearings are allowed for designated “time sensitive” matters. Foreclosures and ejectments are not on the list of time sensitive matters. Note that any default judgment entered between March 1, 2020, and April 21, 2020, shall be vacated upon motion. Additionally, proceeding with a sale in the current climate is likely to result in a sale with no attendance by third parties. Such a sale can easily be challenged as commercially unreasonable.
The Housing Court Department, which hears all eviction matters in Massachusetts, has continued all non-emergency events including, but not limited to, summary process cases, small claims matters, civil matters, ticket appeals, supplementary process proceedings, probable cause hearings, and criminal matters through April 21, 2020. Out of court agreements for judgment may still be filed and entered. Note that any default judgment entered between March 1, 2020, and April 21, 2020, shall be vacated upon motion. While the orders issued thus far do not specifically state that no lockouts may occur, proceeding to lockout during this time would not be in the spirit of the orders issued by the MA Trial Courts. Proceeding to an execution or lockout would likely result in an emergency motion to stay which we believe would be allowed in light of the pandemic.
New Hampshire:
The State of New Hampshire Supreme Court has cancelled all in person proceedings in the Circuit, Superior and Supreme Courts through and including April 6, 2020 except for emergency requests. requests for emergency relief under RSA 450-A in landlord/tenant matters. Additionally, New Hampshire's Governor has issued Emergency Order #4 which now expressly prohibits all judicial and non-judicial foreclosure efforts in the state of New Hampshire. As a result, we must cancel all scheduled foreclosure sales in the state and we are not permitted to schedule any further foreclosure sales in the state until the declared state of emergency has been lifted. Registries and title insurers are interpreting Executive Order #4 to also apply to the recording of foreclosure deeds even if the sale was held prior to the emergency declaration. At least one insurer is declining to insure to insure transfers of property via deeds-in-lieu, while another will insure with a borrower disclosure advising they have knowledge of the emergency declaration. Conveyances to HUD and VA will be insurable so long as the foreclosure deed was recorded prior to the emergency declaration.
Rhode Island:
The Rhode Island Judiciary has cancelled all matters to be held between March 16, 2020 and March 20, 2020. Additionally, all matters have now officially been continued until after 4/17/2020. All filing deadlines have been extended by 30 days calendar days from March 17, 2020. Proceeding with a sale in the current climate is likely to result in a sale with no attendance by third parties. Such a sale can easily be challenged as commercially unreasonable.
Vermont:
The Vermont Judiciary has issued an Administrative Order on March 16, 2020, declaring a Judicial Emergency and postponing all hearings scheduled to be held through 4/15/2020. Through further Administrative Order, the Vermont Judiciary has advised telephonic hearings may be scheduled likely at the discretion of the court.