We are pleased to announce that Michael Mellema has been appointed Co-Chair of the firm’s Labor and Employment Practice Group. Mr. Mellema will lead the group with Co-Chair Karl Schmidt.

Michael B. Mellema joined Parker Milliken in 2007 and specializes in litigation, with an emphases in labor, employment, fiduciary and class action defense.

The firm’s Labor and Employment practice is one of the cornerstones of our 100-year legacy. Parker Milliken attorneys in this group have expertise that crosses industry boundaries and includes clients ranging from aerospace to insurance, from education to construction, and from manufacturing to hospitality.

“I am honored to serve our firm, clients and the Labor and Employment team as Co-Chair. My priority as a leader at Parker Milliken is to ensure we continue our commitment to provide our clients with creative and cutting-edge legal solutions to address their employment needs,” stated Mr. Mellema.

Edzyl Magante was appointed as the Los Angeles Chair for the ABA (American Bar Association) Litigation Section’s Local Presence for the 2023–2024 bar year. This is a new initiative of the ABA that will serve four cities nationwide deemed with a strong litigation presence.

Current cities participating in this pioneering endeavor include Los Angeles, Atlanta, Detroit and Dallas. The goal of Local Presence initiative is to increase the ABA’s engagement at the local level, and spark interest in ABA membership among local practitioners through meaningful programming and networking opportunities.

“I am excited the ABA Litigation Section has launched the Local Presence Program, and honored to serve as a leader for the Los Angeles chapter.”

The firm will be participating in the OCI (On-Campus Interviews) Spring Program and virtually visiting six law schools, including the following:

• USC Gould School of Law
• UCLA Law
• Loyola Law School
• UC Davis School of Law
• UCI Law
• Pepperdine Caruso School of Law

Ten Parker Milliken attorneys will be involved in the interview process this spring and are excited to meet potential law school candidates to support our growing firm. The following attorneys will participate in 2024:

• Brent G. Cheney
• Karen C. Freitas
• Isaac B. Simon
• Gary Tokumori
• Jadene M. W. Tamura
• Steven R. Platt
• Michael B. Mellema
• Pedram Mazgani
• Chris O’Connell
• Joseph Wohrle

On March 24, 2022, Gary Ganchrow shared his insights relating to resident manager lawsuits and answered questions via live stream at the “Resident Manager Lawsuits – The Inside Scoop from Lawyers” webinar hosted by the Apartment Owners Association of California, Inc. View the recorded webinar at www.youtube.com/watch to hear about resident manager claims that get the attention of plaintiff lawyers, how to avoid being an attractive target for a lawsuit, common mistakes made when employing a resident manager, how to avoid being liable for your resident manager, the hidden exposure in resident manager lawsuits, and the "no good deed goes unpunished" rule.

Gary Tokumori and Kenneth Miller will be speaking at the Western Bankers Association Lenders & Chief Credit Officers Conference on the topic, “Handling Problem Loans in the Age of COVID-19”:

In the midst of the COVID-19 pandemic, it is critical for the commercial lender to quickly assess and address problem loans in order to stay ahead of an uncertain and ever-changing financial environment and to allow the lender the best opportunity to efficiently resolve them. In this session, learn best practices for the lender’s business and legal teams to work together to quickly deal with potential risks and issues, and to design effective strategies to both minimize the lender’s problem loans and potential exposure. Explore a variety of techniques to maximize recovery and reduce costs in the handling of troubled loans during the unprecedented age of COVID-19.

Where
Virtual Conference - Online
https://www.westernbankers.com/lc20

Parker Milliken proudly supports the Los Angeles Regional Food Bank with a contribution that will provide 40,000 meals to those most in need. Special thanks to the Parker Milliken volunteers who prepared 3,587 food boxes, which will provide more than 14,000 meals to the community: Stephen Terry, Corina Flores, Steve Platt, Gary Tokumori, Tom Shuck, Ken Miller, Charles Black, Christopher Jew, Dan McGreal, Juliette Tran, Nadine Tan, Jason de Jesus, Jennifer Yi, and Oscar Gomez. For more information, visit lafoodbank.org

On July 9, 2020, Gary Ganchrow will share his insights relating to the plethora of emergency rent and eviction orders that have been issued during the pandemic and will answer questions via live stream at the Legal Pandemic Q&A Session by the Apartment Owners Association of California, Inc. Tune in live from 11:00 AM to 12:00 PM PDT to submit your questions. Register at: https://www.eventbrite.com

Time
10:00 AM – 12:00 PM PDT

Gary Tokumori will be moderating a webinar that will provide an opportunity to hear from writs and receivers department judges on recent developments and what to expect upon the reopening of the Los Angeles Superior Court on June 22, 2020, including the impact of COVID-19 on temporary restraining orders, writs of attachments, and receiverships. Speakers include Hon. James C. Chalfant, Hon. Mary H. Strobel, and Hon. Mitchell L. Beckloff. Register for the webinar at https://lacba.org

Time
12:00 – 1:00 p.m.

Where
Via Zoom Webinar

On April 6, 2020, the Judicial Council of California, the policymaking body of the state’s court system, adopted emergency rules as a result of the COVID-19 pandemic. Emergency Rule 1 effectively places a state-wide moratorium on all evictions—both residential and commercial. First, “A court may not issue a summons on a complaint for unlawful detainer unless” the court finds eviction “is necessary to protect public health and safety.” (Emergency Rule 1(b).) This ban on future evictions will not be lifted until 90 days after the Governor declares an end to the state of emergency related to the COVID-19” or until such time as the Emergency Order is amended or repealed by the Judicial Council. (Emergency Rule 1(e).)

Second, the Judicial Council has order that all pending unlawful detainer matters be delayed until at least approximately mid-June 2020, as trials for all pending unlawful detainer matters must be continued at least 60 days or set no earlier than 60 days from the date that the plaintiff files a request for trial, the court finds eviction “is necessary to protect public health and safety.” (Emergency Rule 1(d).)

We will continue to closely monitor developments in this arena. Please feel free to contact us if you have any questions or require any assistance. If you would like to receive our Financial Services Updates and/or our Labor & Employment Updates, please let us know. In the meantime, please stay safe.

On April 9, 2020, the Internal Revenue Service issued Notice 2020-23, which is an “Update to Notice 2020-18, Additional Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic.” Notice 2020-23 grants or confirms a variety of tax-deadline extensions to July 15, 2020 for any person with a Federal tax payment or tax return obligation previously due anytime between April 1, 2020 and July 15, 2020. Importantly for real estate investors and developers, the IRS has extended the deadline for 1031 exchanges and Opportunity Zone investments.

1031 Exchanges. For any real estate investor that has completed its downleg investment and either the 45-day identification period or the 180-day upleg completion deadline falls between April 1 and July 15, 2020, these deadlines are extended to July 15, 2020.

Opportunity Zones. For any real estate investor that has sold a capital asset and planned to roll over the gain into an Opportunity Fund, and the 180-day deadline to do so falls between April 1 and July 15, 2020, the investor has until July 15, 2020 to roll over the gain into an Opportunity Fund.

We will continue to closely monitor developments in this arena. Please feel free to contact us if you have any questions or require any assistance. If you would like to receive our Financial Services Updates and/or our Labor & Employment Updates, please let us know. In the meantime, please stay safe.

As a result of COVID-19, significant legislation, executive orders, and local ordinances have been issued greatly affecting lenders in general, as well as lenders that specialize in lending to specific sectors of the economy. For example, recent developments arising from COVID-19 have both direct and indirect impact on multifamily lending. In fact, the “Coronavirus Aid, Relief, and Economic Security Act” or the “CARES Act”, signed into law on March 27, 2020, has at least two separate sections that may directly impact multifamily lenders. The following is a very condensed summary of the recent legislative and executive actions arising in response to COVID-19 that may be of great interest to multi-family lenders, beginning with relevant sections of the CARES Act.

Relief for residential mortgage loan payments (Section 4023 of the CARES Act). This section provides forbearance of residential mortgage loan payments for federally backed multifamily mortgage loans commencing on March 27, 2020, the date of the enactment of the CARES Act, and terminating on the later of the date that the declaration of a national emergency is terminated, or December 31, 2020. A multifamily borrower with a federally backed loan that was current on payments as of February 1, 2020 may submit to its loan servicer an oral or written forbearance request affirming the borrower’s hardship due to COVID-19. Servicers will be required to document the hardship and provide a forbearance for up to 30 days and extend that forbearance period for up to two (2) additional 30 day periods. A “multifamily borrower” is defined for purposes of Section 4023 as “a borrower of a residential mortgage loan that is secured by a lien against a property comprising 5 or more dwelling units.”

A multifamily borrower that receives a forbearance under this section may not, for the duration of the forbearance, among other things, evict or intimate eviction proceedings against any tenant for nonpayment of rent or other fees or charges, or charge any fees, penalties, or other charges to the tenant related to such nonpayment of rent.

Eviction Moratorium (Section 4024 of the CARES Act). Section 4024 further imposes a temporary moratorium on eviction filings for a 120 day period beginning on the date of the enactment of the CARES Act, regardless of whether such lessor is the subject of any forbearance granted under the Act. This section prohibits, during the time period between March 27, 2020 and July 25, 2020, a borrower of a federally backed multifamily mortgage loan, from either filing with a court any eviction proceedings against a tenant for nonpayment of rent or other fees or charges, or charging fees, penalties, or other charges to the tenant related to such nonpayment of rent.

Further, a borrower of a federally backed multifamily mortgage loan, may not require the tenant to vacate the covered dwelling unit before the date that is 30 days after the date on which the lessor provides the tenant with a notice to vacate, or issue a notice to vacate under paragraph (1) until after the expiration of the 120-day period March 27, 2020 and July 25, 2020.

State and Local Measures Impacting Lenders Holding Loans Secured By Multi-family Properties. What may be of greater interest to multifamily lenders are recent executive orders and local citywide or countywide measures, because these directives are typically not limited to federally backed loans. For example, Executive Order No. N-28-20, issued by Governor Gavin Newsom on March 16, 2020, “requests” that all financial institutions in California holding home or commercial mortgages implement “an immediate moratorium on foreclosures and related evictions when the foreclosure or foreclosure-related eviction arises out of a substantial decrease in household or business income, or substantial out-of-pocket medical expenses, which were caused by the COVID-19 pandemic, or by any local, state, or federal government response to COVID-19.” Because this “order” is phrased in terms of a request, it does not appear to be a prohibition against foreclosure, but may create business concerns for lenders, when deciding whether or not to proceed with foreclosure (by contrast, the CARES Act provides express prohibitions applicable to federally backed loans as described above).

This same executive order also authorized local governments to halt evictions for renters and homeowners. However, this executive order did not place an actual moratorium on residential or commercial evictions. It merely provided support to residential moratoriums already issued by certain municipalities in the State, including Los Angeles, and has encouraged other municipalities to consider similar measures and to expand them to commercial evictions. As a result, when dealing with a tenant in the wake of the crisis caused by COVID-19, the landlord must determine whether the local government agency for the locale of the property has issued an eviction moratorium, and if such a moratorium has been issued, interpret its meaning.

Measures Adopted By The City Of Los Angeles. On March 17, 2020, the City of Los Angeles extended its residential moratorium to commercial tenants in the City of Los Angeles “if the tenant is able to show an inability to pay rent due to circumstances related to the COVID-19 pandemic. These circumstances include loss of business income due to a COVID-19 related workplace closure, child care expenditures due to school closures, health care expenses related to being ill with COVID-19 or caring for a member of the tenant’s household who is ill with COVID-19, or reasonable expenditures that stem from government-ordered emergency measures.” This moratorium currently only lasts until March 31, 2020, but will likely be extended.

Contrary to some reports, this moratorium does not prevent a landlord from taking steps to evict any tenant in the City of Los Angeles. Rather, it provides a tenant with an affirmative defense to an eviction if the tenant can prove that its inability to pay rent was caused by COVID-19—which may not be difficult, especially for restaurant, bar, nightclub and certain retail tenants, or employees of such establishments.

Executive Order No. N-37-20. On March 27, 2020, Governor Newsom issued Executive Order No. N-37-20, which extends the time period for a defendant tenant to respond to an unlawful detainer (eviction) complaint if the tenant provided prior written notice to its landlord of its inability to pay rent due to circumstances related to the coronavirus.

Current Court Closures. The more effective—but less discussed—moratorium on evictions is the current court closures. For instance, California Chief Justice Tani G. Cantil-Sakauye recently suspended and continued all civil and criminal jury trials for a minimum of 60 days. The Los Angeles Superior Court recently announced that access to all of its courthouses shall be restricted to “judges, commissioners, court staff and authorized persons until further notice.” Because unlawful detainer lawsuits are not included in “time-sensitive, essential matters,” the Court closures have effectively created a moratorium on unlawful detainer trials—the last step of an eviction—in Los Angeles until sometime after April 19, 2020.

We will continue to closely monitor developments in this arena. Please feel free to contact us if you have any questions or require any assistance. If you would like to receive our Real Estate Updates and/or our Labor & Employment Updates, please let me know. In the meantime, please stay safe.

As California employers endure the economic slowdown and impact of State and local isolation orders, they must also act swiftly to update employment policies and practices based on a series of new laws enacted at the Federal, State and local levels. These laws focus on worker protections and requirements for additional paid leave. However, certain provisions also afford important rights, benefits and options to eligible employers, including potential tax credits, refunds and preferential borrowing.

Parker Milliken’s labor and employment department is closely following all developments relevant to employers, which include but are not limited to:

California Executive Order N-33-20 & the Los Angeles County Safer at Home Order: These emergency orders loosely define which California and Los Angeles County employers are allowed to continue to operate at this time based on the CISA Critical Infrastructure Sectors (defined by the Federal Government) and, within Los Angeles County, the definition of “essential” businesses, infrastructure and operations. Analogs to the Los Angeles County Safer at Home Order have also been enacted in other counties throughout the State.

The Families First Coronavirus Response Act (FFCRA, effective April 1, 2020): Subject to dollar for dollar tax credits and refunds, the FFCRA requires employers with fewer than 500 employees to provide 10 days of extra sick pay and, thereafter, up to 10 weeks of paid FMLA leave to eligible employees. Statutory criteria for employee eligibility differs as between the two types of paid leave, but both include employees who must stay home to care for children whose schools or childcare are closed due to COVID-19. Required payments are capped in differing amounts depending on the reason for the paid leave. Covered employers must post in a conspicuous location in the workplace a written notice, published by the Department of Labor, regarding employee rights under the FFCRA. Notice may also be disseminated electronically to employees who are working remotely.

Department of Labor FFCRA Guidelines: In the week following the enactment of the FFCRA, the Federal Department of Labor (“DOL”) published question and answer guidelines clarifying employer and employee rights and obligations under the FFCRA. Among other important clarifications, the DOL explained that covered employers are not required under the FFCRA to pay out Federal sick pay or paid FMLA leave to employees who are not being scheduled to work because of lack of work or a work site closure.

Coronavirus Aid, Relief, and Economic Security Act (CARES Act): Among its employment related provisions, the CARES Act: (1) provides substantially heightened unemployment benefits in the amount of $600 per week to employees who are subject to furlough or lay off due to COVID-19; (2) allows eligible employers to defer payment of applicable payroll taxes through December 31, 2020, with half of the deferred amount due on December 31, 2021 and half by December 31, 2022; (3) provides for additional tax credits in an amount equal to 50% of qualified wages for certain employers subject to closure who nonetheless retain employees; and (4) creates the Paycheck Protection Loan Program to expand SBA loan eligibility for costs relating to employee compensation and benefits. The CARES Act further provides under certain circumstances for forgiveness of the principal borrowed by employers.

Article 5-72HH of the Los Angeles Municipal Code: Pending a final signature by Mayor Garcetti, employees of employers with more than 500 employees will soon be entitled to 80 hours of additional paid sick leave akin to the employees covered under the FFCRA. However, qualifying criteria under the City of Los Angeles Ordinance is distinct and includes employees who elect to take time off because they are at least 65 years of age or suffering from certain other enumerated health conditions that place them in a heightened risk category for COVID-19.

Please feel free to contact us if you have any questions or require any assistance. If you would like to receive Parker Milliken’s future Labor & Employment Updates, Financial Services Updates, and/or Real Estate Updates, please let us know. In the meantime, please stay safe.

Karl A. Schmidt

Direct: 213 683-6518

Gary Ganchrow

Direct: 213 683-6535

Michael B. Mellema

Direct: 213 683-6692

On March 26, 2020, the US Environmental Protection Agency issued its Memorandum entitled “COVID-19 Implications for EPA’s Enforcement and Compliance Assurance Program.” As spelled out in greater detail in this 7 page document, retroactive to March 13, 2020, US EPA will be exercising its enforcement discretion for certain noncompliance due to the COVID-19 pandemic.

Gary A. Meyer provides an environmental law update discussing the US EPA Memorandum and how COVID-19 is impacting environmental compliance obligations. >> Read the article.

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). While much of the CARES Act focuses on providing economic relief to individuals and businesses impacted by COVID-19, certain provisions of the Act will have direct and indirect impacts on real estate holdings. The following provides a summary of the key provisions that will impact real estate holdings:

[Section 2307] The CARES Act provided a much needed technical amendment to Internal Revenue Code section 168, by providing that a “qualified improvement property” will now have an intended 15-year life rather than the current 39-year life set forth in the Tax Cuts and Jobs Act of 2017. This technical amendment is retroactive to January 1, 2018. Thus, taxpayers should be entitled to file amended returns to reap the benefits of accelerated depreciation in 2018 and 2019.

[Section 4022] Consumer borrowers with federally backed mortgages have the ability to receive a 180-day forbearance on mortgages, which forbearance may be extended for an additional period of up to 180 days. During a period of forbearance, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrower’s account. Finally, except with respect to a vacant or abandoned property, a servicer of a federally backed mortgage loan may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale until at least May 17, 2020.

[Section 4023] Borrowers with mortgages on certain multifamily properties also can obtain a forbearance on the mortgage for up to 30 days, which may be extended for two additional 30 day periods. But a borrower that receives such a forbearance may not, for the duration of the forbearance, evict or initiate the eviction of any tenant on the subject property solely for nonpayment of rent, or charge any late fees, penalties, or other charges for late payment of rent. This Section is effective as of March 27, 2020, the date of the enactment of the CARES Act, and terminates on the later of the date that the declaration of a national emergency is terminated, or December 31, 2020.

[Section 4024] Between March 27, 2020 and July 25, 2020, the lessor of a “covered” dwelling may not initiate a legal action to recover possession of the covered dwelling from the tenant for nonpayment of rent or other fees or charges, or charge fees, penalties, or other charges to the tenant related to such nonpayment of rent. The temporary moratorium on eviction filings found in this Section is distinct from the provisions found in Section 4023.

In addition, nothing in the CARES Act abrogates any existing State or local government prohibitions on evictions or foreclosures. Accordingly, in addition to complying with the CARES Act, any mortgagor or landlord must analyze the State and local laws, orders and ordinances before initiating any eviction or foreclosures.

Finally, the CARES Act did not include any provision concerning 1031 exchanges. As a result, at this time, there has been no changes to the deadlines imposed under 1031 of the IRC, although these deadlines may still be extended for some or all parts of the country, including California.

We will continue to closely monitor developments in this arena. Please feel free to contact us if you have any questions or require any assistance. If you would like to receive our Financial Services Updates and/or our Labor & Employment Updates, please let us know. In the meantime, please stay safe.

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Among the provisions of this wide-reaching legislation designed to address the COVID-19 pandemic, the CARES Act provides increased loans and loan guarantees for small businesses. While the details of the newly approved loans and loan guarantees are complicated, the following provides a condensed summary of these loan programs.

Small Business Administration Loans

In the Keeping American Workers Paid and Employed Act (KAWPEA) [Sections 1101 et seq. of the CARES Act], Congress appropriate $349,000,000,000 for small business loans. These small business loans are generally available to businesses employing up to 500 employees (and certain other qualifying entities), and waive the ordinary Small Business Administration (SBA) requirement that a business show that it cannot obtain credit elsewhere. These small business loans will be made available through the SBA and approved lenders.

A business may obtain a loan under this program in an amount up to two and one-half times its annual payroll costs (with certain limitations), plus the outstanding balance of any pre-existing, qualifying SBA loan, up to a cap of $10,000,000. The maximum interest rate for this loan program is 4%. The borrower may use the loan proceeds for payroll costs (which includes, inter alia, salary and wages, and most benefits, but not payroll taxes), mortgage payments, rents, utilities, and interest on other debt obligations. All payments on these new loans should be deferred for a period between 6 and 12 months.

Finally, the most attractive aspect of this loan program is that, if all requirements are met, all or a portion of these loans may be forgiven to the extent the proceeds are used on payroll costs, or “covered” mortgage payments, rents and or utility payments. The exact amount that may be forgiven will depend on several factors, including but not necessarily limited to how the business’s post-COVID-19 payroll compares to its pre-COVID-19 payroll.

Coronavirus Economic Stabilization Act Loans

If a business cannot obtain adequate economic relief through the KAWPEA or other portions of the CARES Act, the Coronavirus Economic Stabilization Act (CESA) [Sections 4001 et seq. of the CARES Act] may provide some relief. Under CESA, Congress has appropriated another $17,000,000,000 in loans and loan guarantees available to impacted businesses.

There are three different loan programs under CESA—one for “Main Street Businesses” (small businesses up to 500 employees and mid-sized businesses), one for just “Mid-Sized Businesses” (between 501 and 10,000 employees), and one for all businesses, but the Mid-Sized Businesses is the only program with a capped interest rate (2% per annum).Each of these programs will place certain restrictions on the borrower. These restrictions—although they may vary depending on the loan program—generally include, but are not necessarily limited to:

-a limit on the borrower’s ability to repurchase its stocks listed on a national security exchange;
-restrictions on paying dividends;
-restrictions on outsourcing or offshoring jobs;
-requirements that borrowers maintain 90% of their pre-COVID-19 employment levels; and
-limits on executive bonuses.

The details regarding each of these loan programs, and especially how they interact with other aspects of the CARES Act, are complex and often nuanced. Each business should closely analyze its ability to qualify for the various loan programs, as well as the other many taxpayer-friendly provisions of the CARES Act, to ensure it applies for the most advantageous program. In addition, before accepting any loan, each business should carefully review the loan’s terms and conditions, as well as debt forgiveness possibilities and eventual tax consequences. A careful evaluation of each business’s facts and circumstances is necessary to ensure that the business utilizes the various provisions of the CARES Act in the manner most beneficial to it.

We will continue to closely monitor developments in this arena. Please feel free to contact us if you have any questions or require any assistance. If you would like to receive our Financial Services Updates, Real Estate Updates and/or our Labor & Employment Updates, please let us know. In the meantime, please stay safe.

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Among the provisions of this wide-reaching legislation designed to address the COVID-19 pandemic are several which directly impact financial institutions, including:

The Payment Protection Program is implemented under the Small Business Act and provides for fully guaranteed loans through December 31, 2020 to businesses with 500 or fewer employees, who were in operation as of February 15, 2020 and adversely affected by COVID-19, to maintain, among other things, payroll, mortgage payments, lease payments, and utility payments. The program is available to SBA lenders and other insured depository institutions and credit unions authorized by the Department of the Treasury. (Sections 1102, 1109)

The Bankruptcy Code is amended to provide small businesses with more access to the Small Business Reorganization Act, increasing the amount of debt eligibility for a small business bankruptcy case from $2,725,625 to $7,500,000. The link to our prior Financial Services Department newsletter which discusses the SBRA is https://t.e2ma.net/message/54zdyc/116tngb. The amendments, among other things, allow debtors to exclude federal payments related to COVID-19 from income determinative of bankruptcy eligibility and Chapter 13 debtors to modify their plans for up to seven years instead of the usual maximum of five years. These provisions remain in effect for one year following enactment of the CARES Act. (Section 1113)

The Debt Guarantee Authority of the Federal Deposit Insurance Corporation under the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended to establish a program to guarantee obligations beyond the current maximum of $250,000 through December 31, 2020. In coordination with the FDIC, the National Credit Union Administration Board may increase the share insurance coverage as applied to federally insured credit unions. The CARES Act does not identify a specific limit, although there is speculation that the FDIC, which is authorized to implement the debt guarantee program, may provide an unlimited guarantee during this time period. We will provide an update once the FDIC issues guidance on the guarantee limit. (Section 4008)

The Temporary Lending Limit Waiver is an amendment to the Financial Stability Act which provides the Comptroller of the Currency authority with respect to national banking associations to exempt any transaction from the single borrower loan limit for loans made to any nonbank financial company, and additional authority to exempt any other transaction from the limit as long as such exemption is in the public interest. This authority ends the earlier of the termination of the national emergency declared on March 13, 2020 or December 31, 2020. (Section 4011)

The Temporary Relief For Community Banks is an amendment to the Economic Growth, Regulatory Relief, and Consumer Protection Act and requires federal banking agencies to issue an interim final rule which lowers the Community Bank Leverage Ratio from 9% to 8% while granting qualifying community banks a “reasonable grace period to satisfy the Community Bank Leverage Ratio.” The interim rule will be effective upon issuance and terminate the earlier of the termination of the national emergency declared on March 13, 2020 or December 31, 2020. (Section 4012)

The Temporary Relief From Troubled Debt Restructurings provision of the CARES Act allows financial institutions, including credit unions, to temporarily suspend requirements under United States Generally Accepted Accounting Principles for any loan modifications made related to COVID-19 that would otherwise be considered troubled debt restructuring. The suspension period lasts from March 1, 2020 to the earlier of sixty days after the date of termination of the national emergency declared on March 13, 2020 or December 31, 2020. (Section 4013)

The Optional Temporary Relief From Current Expected Credit Losses provision of the CARES Act grants financial institutions, including credit unions, the option to temporarily delay measuring credit losses under the new Current Expected Credit Losses (CECL) standards. This temporary relief ends the earlier of the date on which the national emergency declared on March 13, 2020 is terminated or December 31, 2020. (Section 4014)

The Credit Protection During COVID-19 provision of the CARES Act amends the Fair Credit Reporting Act to require a person furnishing information under the FCRA to report as “current” a credit obligation or account if an “accommodation” was made by the furnisher. Except in the case of charge-off, if the consumer’s credit obligation was delinquent prior to an “accommodation,” the furnisher is required to maintain the delinquent status during the accommodation period, and report the obligation or account as “current” if the consumer brings the account current during the accommodation period. The covered period begins Jan. 31, 2020 and ends the later of 120 days after enactment of the CARES Act or 120 days after the national emergency declared on March 13, 2020 is terminated. (Section 4021)

In a separate update, we will provide information on Forbearance of Residential Mortgage Loan Payments For Multifamily Properties with Federally Backed Loans (Section 4023), as well as state and local measures impacting lenders holding loans secured by multifamily properties.

We will continue to closely monitor developments in this arena. Please feel free to contact us if you have any questions or require any assistance. In the meantime, please stay safe.

Having supported our clients through good times and bad for well over 100 years, Parker Milliken remains dedicated to keeping its clients informed of any significant changes in the national, state and local laws caused by COVID–19 and assisting our clients with the development of new and creative strategies. Many challenges have arisen due to isolation precautions issued throughout the State of California and the nation, as well as the resulting tidal wave of new rules, regulations and ordinances being issued almost daily. These widespread changes affect such areas as commercial loan production, litigation, work-outs, evictions and foreclosure, and bankruptcy. We anticipate that these challenges will increase as COVID–19 continues to disrupt the marketplace. We are committed to keeping you abreast of these changes and remain available to provide you with the highest quality legal services.

Below is the direct contact information for the principals of Parker Milliken’s Financial Services and Creditors’ Rights Department who continue to be available for your assistance:

Larry Ivanjack
(213) 683-6604


Kenneth Miller
(213) 683-6605


Gary Tokumori
(213) 683-6608


Brent Cheney
(213) 683-6575


In keeping with Center for Disease Control and local health authority advisories, Parker Milliken has encouraged attorneys and staff to work from home as the particular demands of their day-to-day client service requirements permit. This is not a new phenomenon as many of our attorneys have regularly done so on selected days for years and our technology to facilitate this is well developed among both attorneys and staff members.

Although much remains uncertain, our commitment to you and your legal needs continues to be unwavering. Parker Milliken has been serving its clients for over a century and we look forward to continuing to help our clients navigate through the latest challenges we all face. Most importantly, we hope you and your loved ones remain healthy and safe.

Having supported our clients through good times and bad for well over 100 years, Parker Milliken remains dedicated to keeping its clients informed of any significant changes in the national, state and local laws caused by COVID–19 and assisting our clients with the development of new and creative strategies. This update focuses on the impact that COVID-19 has had and will continue to have on commercial evictions.

As must people know from the media coverage, last week President Trump ordered the suspension of all evictions and foreclosures for all properties owned by the United States Department of Housing and Urban Development, and Governor Newsom issued an Execute Order that authorized local governments to halt evictions for renters and homeowners. Governor Newsom, however, did not place any actual moratorium on residential or commercial evictions. Instead, Governor Newsom’s Executive Order provided support to residential moratorium’s already issued by certain municipalities in the State, including Los Angeles, and has encouraged other municipalities to consider similar measures and to expand them to commercial evictions. As a result, when dealing with a commercial tenant in the wake of the crisis caused by COVID-19, the Landlord must determine whether the local government agency for the locale of the property has issued an eviction moratorium, and if such a moratorium has been issued, what does it mean.

On March 17, 2020, the City of Los Angeles extended its residential moratorium to commercial tenants in the City of Angeles “if the tenant is able to show an inability to pay rent due to circumstances related to the COVID-19 pandemic. These circumstances include loss of business income due to a COVID-19 related workplace closure, child care expenditures due to school closures, health care expenses related to being ill with COVID-19 or caring for a member of the tenant’s household who is ill with COVID-19, or reasonable expenditures that stem from government-ordered emergency measures.” This moratorium currently only lasts until March 31, 2020, but will likely be extended.

Contrary to some reports, this moratorium does not prevent a commercial landlord from taking steps to evict any commercial tenant in the City of Los Angeles. Rather, it provides a tenant with an affirmative defense to an eviction if the tenant can prove that its inability to pay rent was caused by COVID-19—which may not be difficult, especially for restaurant, bar, nightclub and certain retail tenants.

The more effective—but less discussed—moratorium on evictions is the current court closures. For instance, yesterday, California Chief Justice Tani G. Cantil-Sakauye suspended and continued all civil and criminal jury trials for a minimum of 60 days. Last week, the Los Angeles Superior Court is closed for all matters through at least April 16, 2020 except “time-sensitive, essential matters,” and most of California’s Superior Courts have announced similar closures. Yesterday, the Los Angeles Superior Court announced that access to all of its courthouses shall be restricted to “judges, commissioners, court staff and authorized persons until further notice.”

Because unlawful detainer lawsuits are not included in “time-sensitive, essential matters,” the Court closures have effectively created a moratorium on unlawful detainer trials—the last step of an eviction—in Los Angeles until sometime after April 19, 2020. Thus, while a landlord may begin the eviction process and even file an unlawful detainer lawsuit (assuming the subject court allows electronic filing), a 3-day notice to pay or quit will not carry much force and effect until the courts re-open.

If you would like to discuss strategies and options in dealing with a commercial tenant that has defaulted, we remain operational and available to assist you with any of your legal needs. Below is the contact information for certain of Parker Milliken’s principals that specialize in real estate law:

Richard Robins
(213)-683-6573


Frank Albino
(213)-683-6598


Carlo Sima
(213) 683-6628


Brent Cheney
(213) 683-6575


We at Parker Milliken hope this e-mail finds you and yours safe and well. Given these unprecedented times, we are providing periodic updates on current developments which we hope will be of use to you in dealing with the constantly changing business and financial environment. If you do not wish to receive future updates, please let me know.

Michael B. Luftman was selected by his peers for inclusion in the 2020 Edition of The Best Lawyers in America©, for Trusts and Estates. Attorneys on the list were selected based on exhaustive peer-review surveys that examine the professional abilities, current practice, and experience of each lawyer.

Mr. Luftman's practice emphasizes tax planning for owners of privately held businesses, high net worth individuals and professionals. He has extensive experience with all types of estate and gift tax matters, including succession planning for privately held businesses, charitable gifting, private foundations, limited partnerships, pension planning, asset protection planning, and probate and trust administration proceedings and the related tax work. Mr. Luftman is a Certified Specialist in Taxation Law as designated by the California Board of Legal Specialization.

For more information about Mr. Luftman, visit https://parkermilliken.com/michael-b-luftman

For information regarding Best Lawyers, visit https://www.bestlawyers.com

Gary Tokumori and Kenneth Miller will be speaking at the Western Bankers Association Lenders & Chief Credit Officers Conference on the topic, “Detecting a Problem Loan Before it Becomes a Problem”: In commercial lending, it is critical to determine and assess problem loans as quickly as possible in order to allow the lender to efficiently resolve them. In this session, learn how the lender’s business and legal teams can work together to quickly identify potential risks and issues, and design strategies to both minimize the lender's problem loans and potential exposure. Explore a variety of techniques to maximize recovery and reduce costs in the handling of troubled loans.

For more information, visit: https://www.westernbankers.com/LC19

Where
Monarch Beach Resort, Dana Point, California

Parker Milliken will be hosting its 35th Annual Environmental Law Seminar at the Omni Hotel. As in prior years, this year’s program will feature distinguished speakers from key governmental agencies who will discuss the latest developments regarding environmental compliance and enforcement issues, including how recent cleanup standards may impact a business’ or property owner’s ability to achieve site closure and how these new regulations may adversely increase your legal liability.

The day’s activities will also feature a stellar enforcement panel which will discuss the latest trends and developments in environmental administrative, civil and criminal enforcement.

As always, our program will feature Parker Milliken’s Environmental Law Experts who will provide their insights on the latest environmental laws as well as tips on how to best protect your interests when buying, selling, leasing or developing properties with environmental contamination.

There is no admission fee but seating is limited. Reserve your spot by emailing Sharon Austin at or calling (213) 683-6655.

Where
Omni Hotel, Los Angeles, California

Parker Milliken proudly supports firm client Northern Trust as it receives the Advocate of Justice award from Western Justice Center (“WCJ”) at the 2019 Justice Awards Gala and Auction. WJC is a non-profit organization that empowers people to resolve conflicts peacefully and to address the biases that often underlie those conflicts, and Parker Milliken congratulates Northern Trust on its continuing work to help WJC achieve its mission.

For more information, visit www.westernjustice.org

Where
Vibiana, 214 South Main Street, Los Angeles, California

Gary Ganchrow will be presenting at the 2019 Apartment Association of Greater Los Angeles (AAGLA) Annual Apartment Buildings conference and expo.

Gary Ganchrow’s presentation, “How to Avoid Falling Prey to Attorneys Looking to File Resident Manager Lawsuits,” will address the common pitfalls, misconceptions, and solutions when paying and terminating resident managers.

Register at https://bit.ly/2LmtY0s. For more information on the conference and expo, visit buildingsla.com

Where
Pasadena Convention Center, Pasadena, California
2:30 PM, Stage 2

Parker Milliken proudly sponsors the 45th Annual Ability First Festival of Fall held at the Historic Laurabelle A. Robinson House in Pasadena.

AbilityFirst provides a variety of programs designed to help people with disabilities achieve their personal best throughout their lives. For more information, visit https://www.abilityfirst.org/events/festival-of-fall

Where
Historic Laurabelle A. Robinson House, Pasadena, California

Gary Tokumori was recently elected the 2019-2020 Chair of the Executive Committee of the Remedies Section of the Los Angeles County Bar Association. Mr. Tokumori has previously served as Secretary and First Vice Chair on the Executive Committee.

Mr. Tokumori specializes in the areas of business, commercial and financial services litigation. Experienced in prejudgment remedies, he continues to successfully secure writs and receivers prior to obtaining multi-million dollar judgments for his creditor clients.

Gary Ganchrow will be addressing the Business Law and Real Property Section of the San Fernando Valley Bar Association (SFVBA) on property management strategies and liability issues. For information on the SFVBA, please visit: https://sfvba.org

Where
San Fernando Valley Bar Association Offices at 12:00 p.m.
20750 Ventura Blvd., Suite 140, Woodland Hills, CA 91364

Ken Miller will be moderating a multi-state panel at the Annual Meeting of the American College of Mortgage Attorneys. The presentation will discuss a variety of issues facing commercial lenders in enforcing commercial real property secured loans, and strategies to maximize recovery.

The American College of Mortgage Attorneys is comprised of approximately 500 attorneys throughout North America who are recognized as experts in commercial real property financing and related issues. For more information, please visit: https://www.acmaatty.org

Where
Monterey Plaza Hotel & Spa, Monterey, California

Parker Milliken proudly sponsors the Los Angeles Lawyers Philharmonic & Legal Voices Choir. Firm paralegal Corina Flores is a cellist in the Los Angeles Lawyers Philharmonic.

Featuring the mighty “O Fortuna” from Carmina Burana, the “Ode to Joy” from Beethoven’s 9th Symphony, selections from Man of La Mancha, and a salute to legendary television and film composer Charles Fox (“Killing Me Softly” and themes from Happy Days, Laverne & Shirley, and Love Boat), the Los Angeles Lawyers Philharmonic and its 100-member chorus, Legal Voices, will celebrate their 10th Anniversary under the baton of founder-conductor Gary S. Greene, Esq.

For more information, visit: https://www.lalawyersphil.org

Where
The Music Center’s Walt Disney Concert Hall, Los Angeles, California

Gary Ganchrow’s article sheds light on the legal mechanics of how relatively “minor” infractions in paying resident managers – and, by extension, any employee – can become far more costly than most people can imagine. For access to the article, visit: https://www.aoausa.com

Parker Milliken is proud to sponsor the 46th Anniversary Awards Gala for the Los Angeles Center for Law and Justice (LACLJ). The event celebrates the strength and resilience of survivors of domestic violence and sexual assault, and honors those working to ensure that their rights are protected. This event is LACLJ's annual fundraiser supporting their work in the community providing legal representation to low-income survivors throughout Los Angeles County.

To register and learn more, please visit: https://laclj.networkforgood.com/events/10684-laclj-s-46th-anniversary-awards-gala

Where
The L.A. Grand Hotel Downtown, Los Angeles, California

Michael B. Luftman shares his personal family experiences with Providence Tarzana Hospital and his appreciation for the wonderful treatment his family received. In his presentation, Michael B. relates his charitable giving and teaches effective ways on how to save taxes by donating to charity via charitable lead trusts. The event also features speakers presenting on charitable remainder trusts and charitable annuities.
For more information, please visit:
https://california.providence.org/giving/ways-to-give/

Michael B. Luftman serves on the Providence Tarzana Real Estate Committee Advisory Council.

Where
El Caballero Country Club, Tarzana, California

Gary Ganchrow’s article in this month’s Apartment Age magazine, a publication by The Apartment Association of Greater Los Angeles (AAGLA), discusses the challenges associated with paying a salary to non-exempt employees. It specifically discusses paying resident managers, but the issues apply more broadly to any non-exempt employee.

For more information, visit: https://aagla.org/digital-versions

The Los Angeles County Bar Association (LACBA) celebrates 140 years of service to the Los Angeles legal community and recognizes past and present bar leaders in honor of Asian American and Pacific Islander Heritage Month. Gary Tokumori is recognized as one of LACBA’s distinguished group of honorees, which includes judges, bar association leaders, and community advocates. He currently serves on the Executive Committee of LACBA's Remedies Section and on the Board of Governors of the Japanese American Bar Association.

For more information, visit: https://www.lacba.org

Parker Milliken proudly sponsors the Philippine American Bar Association’s (PABA) 33rd Annual Installation & Awards Gala. Congratulations to the evening’s distinguished honorees and the 2019 PABA Officers and Board of Directors, including our own associate Jason A. de Jesus.

To register and learn more, visit http://philippineamericanbar.org/?page_id=1048

Where
Millennium Biltmore Hotel, Los Angeles, California

The Los Angeles County Bar Association (LACBA) celebrates 140 years of service to the Los Angeles legal community and recognizes past and present bar leaders in honor of Asian American and Pacific Islander Heritage Month. Nadine Tan is featured as part of LACBA’s distinguished group of honorees, which includes judges, bar association leaders, and community advocates. She is an active member of the Board of Governors of the Southern California Chinese Lawyers Association, where she serves as the Co-Chair of Communications.

For more information, please visit: https://www.lacba.org

Parker Milliken is proud to sponsor the Southern California Chinese Lawyers Association’s (SCCLA) 44th Anniversary Installation & Awards Banquet. We warmly congratulate the evening’s distinguished honorees and the 2019 SCCLA Board of Governors, including our associate Nadine Shu Rong Tan.

To register and learn more, visit https://www.sccla.org/event-3270630

Where
Westin Bonaventure Hotel & Suites, Los Angeles, California

Brent Cheney serves as the Chair of the 33rd Annual Environmental Law Spring Super Symposium, hosted by the Los Angeles County Bar Association Environmental Law Section.

The 33rd Annual Spring Super Symposium is the premier general environmental law event in Southern California, bringing together leaders from the private bar, government, academia, non-profits and in-house counsel to address important developments in environmental law. This year’s symposium will offer five panels focused on: (1) Common Law Claims to Combat Climate Change; (2) RECLAIM Sunset: Swiftly Come the Landing Rules; (3) CEQA Meets Sustainability: Climate Change, Infill Development, and the New Guidelines; (4) Alternative Groundwater Regulation in Arid California during the age of SGMA; and (5) Ethical Implications of Environmental Due Diligence.

Where
The L.A. Hotel Downtown, Los Angeles, California

Parker Milliken is pleased to co-sponsor the Japanese American Bar Association’s 43rd Annual Installation & Awards Gala. Gary Tokumori serves on the Board of Governors of the Japanese American Bar Association.

Where
The Westin Bonaventure Hotel & Suites, Los Angeles, California

Parker Milliken’s Financial Services Department will be conducting its second in a series of presentations designed for commercial lenders.

In our previous presentation, we discussed changes in the law since the Great Recession of 2007, including changes in the law creating greater exposure to our commercial lender clients. The April 4th presentation will expand our discussion of how best to protect commercial lenders in this changing lending and legal environment. We will first present a case study of a lender liability lawsuit and discuss strategies available for lenders to best handle such litigation. We will then focus on how best to prevent such lawsuits from arising, ranging from creative approaches taking advantage of existing best practices as well as current trends involving emerging technology and artificial intelligence to streamline these approaches. The program is designed for loan production teams, special assets divisions, and in-house counsel.

Where
Omni Hotel, Los Angeles, California