BUSINESS LAW 101 / Coronavirus Legal Updates

By Albert L. Kelley, Esq.

If you follow me on Facebook (@alkelleylaw), you know that I routinely compare the number of people who have caught Coronavirus with the populations of countries, states, and cities. While every day the news tells us how many people were infected or died, it is sometimes hard to understand what thee values actually mean. As of today (April 16) on a global level, more people have caught Coronavirus than the entire population of New Mexico and more people have died than the entire population of Gainesville, FL. On a National level, the number of infected people is greater than the entire population of Vermont and the number that have died exceeds the population of Winter Park, FL. In Florida, the number of sick exceeds the population of Fort Walton Beach, FL and the number who died exceeds the entire population of Duck Key. 

Last week I discussed the SBA PPP loan/grant program. The demand for this program (and the companion EIDL program) was so great that after less than two weeks the SBA ran out of money. If you made application and received a loan number, congratulations. Others will have to wait to see if Congress issues new legislation adding additional funds to the SBA programs. It appears that while the program was designed to help small businesses, the larger business received funds more often than smaller businesses. 60% of businesses with over 200 employees had their applications processed as opposed to only 14% of businesses with less than 15 employees. This is likely due to banks prioritizing their larger customers over their smaller ones. Florida had the third highest number of loans with 52,021 loans totaling $12,656,107,018. 

If your business has Business Interruption Insurance, your insurance company may tell you the policy does not include pandemics. Don’t believe them. Many lawyers are already challenging this issue and Congress is considering passing a law that requires insurance companies to honor these policies and pay for the shut-down period. 

The judicial system is slowly coming back to life. The Supreme Court has suspended all in-person hearings until May 29, however starting next week, the Courts can start holding telephonic hearings. In some cases, it may be possible to hold video hearings if witnesses are required (The Court is allowed to take testimony, as long as the Judge is able to see the witness when they are being sworn in).  The clerk’s office has set up a drop-box system allowing attorneys to leave filings in one box and pick up filings from another. This will allow civil cases to proceed. The Sheriff’s Office civil division is still closed to personal drop-offs, so all submissions must be through the mail. All that being said, eviction and foreclosure actions are still suspended by order of the Governor, so those cases may not be filed or pursued at this time. 

Al Kelley is a Florida business law attorney located in Key West and previously taught business law, personnel law, and labor law at St. Leo University.  He is also the author of four law books: (“Basics of Business Law” “Basics of Florida’s Small Claims Court”, “Basics of Florida’s Landlord/Tenant Law” and “Basics of Starting a Florida Business” (Absolutely Amazing e-Books)). This article is being offered as a public service and is not intended to provide specific legal advice.  If you have any questions about legal issues, you should confer with a licensed Florida attorney.

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