Notice to tenant for eviction inside brown envelope and face mask on top.The Center for Disease Control’s (CDC) Eviction Moratorium confirms President Reagan’s quip that a government program is the “nearest thing to eternal life we’ll ever see on this earth.” As explained in my prior post, the CDC issued an order in September 2020 “temporarily” halting residential evictions , reasoning that it was necessary to combat the spread of the coronavirus (COVID-19). That moratorium was originally set to expire on December 31, 2020, but Congress extended it by one month. Before that congressional extension expired, the CDC—now acting under the Biden administration—twice extended the moratorium, with the latter extension due to expire on June 30, 2021.

After repeatedly stating that he lacked the authority to extend the Eviction Moratorium again, President Biden caved into pressure from progressive Democrats and did exactly that earlier this month. The President doubted that the new extension would pass “constitutional muster” but was hopeful that the legal challenges would provide more time to distribute congressional funds for rental assistance.

Like the prior versions, the latest version of the Eviction Moratorium generally prohibits the evictions of a residential tenant who expects to earn $99,000 or less in 2021 (or $198,000 if filing jointly) and signs a declaration stating that he or she has lost income, applied for government assistance, and would likely become homeless or forced to move into a more crowded living situation if he or she was evicted. But, unlike prior versions, the latest one does not ban evictions nationwide. Instead, it applies in counties that are “experiencing substantial or high levels of community transmission of [COVID-19].” This latest version is set to expire on October 3, subject, of course, “to revision based on the changing public health landscape.”

The upshot is that the Eviction Moratorium is in effect for over 90 percent of the country and nearly all counties in Texas. Check this map to determine whether it applies to your property. The courts, however, are split on whether the Moratorium is legal. The Supreme Court has not ruled on it yet, but there are strong indications that most of the justices believe that the CDC lacks the authority to halt evictions. Here’s what you need to know about the latest extension:
Continue Reading The CDC’s New Eviction Moratorium Extends the Uncertainty for Landlords and Tenants

Black silhouette of female singer with white spotlights in the background.Grant Bux’s daughter Kathy “Kitten” Bux is quite the singer. She had her own record deal when she was 15 and hit it big when she became the executive producer of her fifth studio album at 26. But then, depending upon who you ask, Kitten had emotional and mental issues that prompted Grant to ask for a guardianship of Kitten. The Court decreed a guardianship; Grant is the guardian. Can a parent take over the responsibility for the physical and financial well-being of their adult child? If so, how, why and for how long?
Continue Reading Guardianships in Texas and Your Adult Children

Female legs with 2 arrows and question mark, painted on the asphalt.On Father’s Day, Morgan Bux celebrated with her dad Big Daddy Bux and asked him to team up with her to buy the fast-growing Green Earth Air Conditioning and Heating, LLC in Buda from the Green Earth retiring owner Gaia. Morgan suggested to Big Daddy that he invest her inheritance in Green Earth and work with her to grow the business as part of his own retirement and estate planning. Big Daddy’s tax and estate planning lawyers outlined a plan. Morgan’s business consultant recommended the formation of a Green Earth advisory team to support her after the purchase and developed a long-term plan for management growth and business expansion. To complete the purchase, should Morgan buy the assets or Gaia’s membership interest in the Green Earth limited liability company? Often buyers would rather purchase the company’s asset while sellers prefer to sell the stock / membership interest in the entire company. Why is that? What would Morgan and Big Daddy prefer?
Continue Reading Buying Daughter a Business – Assets or Stock?

Yellow metal sign.Angelica Bux and her son Duke own a fast-growing, family business Blue Skies Air Conditioning and Heating, LLC in Cotulla Texas. Angelica plans to retire by selling Blue Skies to Duke to fund her retirement.  Their business consultant developed their near-term plan to expand and maximize their business’ value. More recently, their tax and estate planning lawyers outlined an effective tax transition plan and the formation of a Blue Skies’ advisory team to support Duke’s management after the sale. To complete the purchase, should Duke buy the assets or Angelica’s membership interest in the Blue Skies’ limited liability company? Often buyers prefer to purchase the company’s assets, and sellers would rather sell the entire company. Why is that? Does an inter-family sale affect their decision?
Continue Reading Selling Mom’s Business – Asset or Stock Sale?

Defaulting renter with facemask receives letter giving notice of eviction from home on wooden tableDrake Goodman and Patty Palmer lease a studio apartment to Carter Haynes. But Haynes has not paid rent since last May, when the shelter-in-place orders caused his fledging restaurant to go out of business. While sympathetic to Haynes’s plight, the loss of rental income has severely damaged Goodman and Palmer’s own finances, and they are growing increasingly desperate. Can they evict Hayes? Should they?
Continue Reading CDC’s Eviction Moratorium: Legal Limbo for Landlords and Tenants

Great concept of divorce in quarantine due to the 2019 coronavirus pandemic. Face mask cut in half with wedding rings.Jack Bux and his high school sweetheart, Diane, have been married a few years, but the pandemic has taken its toll on their relationship, and they could soon be parting ways. Going into the marriage, Jack had a number of property interests – a home with a mortgage, a retirement account and a small part of the family business – and now he’s concerned that Diane will be able to walk away with half of what he’s been building over the years. Like most Texans, Jack is aware that when it comes to marital property, Texas is a “community property state.” What does this really mean for Jack’s home, retirement account and business?
Continue Reading Texas Community Property Law: An Intro for Business Owners

Entrance of Walt Disney World in Orlando, FloridaUncle Pennybags plans to build a hotel on Marvin Gardens, but to do so, he needs to acquire adjacent properties on Atlantic Avenue, owned by Charles Darrow, and Ventnor Avenue, owned by George Parker. Pennybags knows that if Darrow or Parker knew of his plans, they would demand a higher price for their properties and a still higher price would be demanded by the last lot owner to sell. So Pennybags forms a dummy company called Acme Acquisitions, LLC and appoints his good friend, Lizzie Magie, as its president. Magie approaches Darrow and Parker, who both agree to sell their properties to Acme Acquisitions on favorable terms. After the contracts have been signed, Pennybags announces that he is the true purchaser and that he plans to build his hotel. Furious, Darrow and Parker refuse to consummate the transaction, so Pennybags sues. Are Darrow and Parker out of luck?
Continue Reading Using a Dummy Company Can Be a Smart Business Decision

Ernest “Big Daddy” Bux’s great Auntie Heidi Loper moved to a retirement community when her husband Sam retired years go. A short time later, Sam died. Over the years Heidi’s handyman Don Meetdirts and his wife Ada befriended Heidi. They persuaded her to leave them millions of dollars in cash and other items. Prior Wills would have left Heidi’s property to her family of whom she was very proud – both of the Bux family name and of the assets she and Sam had acquired. When the Wills were changed, Heidi had failing eyesight, deteriorating health and a delicate mental condition. When Big Daddy and the Bux family learned at Auntie Loper’s death that the Meetdirts were the only beneficiaries under the last Will, they asked their favorite attorney if they have a claim of undue influence to deny the Meetdirts any inheritance. Do they?
Continue Reading Grandma Left the Money to Whom? Legal Options for Undue Influence and Changing of Wills

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Wanting to diversify his investments, Ernest “Big Daddy” Bux signed a franchise agreement with GA Fitness last year. Construction by Big Daddy’s contractor Bill Toosuit is scheduled to be completed for in time for an early May grand opening in the new strip center owned and managed by Mawl & Mawl. Last week, in response to the COVID-19 pandemic, the town’s mayor and the state governor prohibited any gathering of more than 10 people and directed that all bars, restaurants and gymnasiums close. Now that gymnasiums are prohibited from opening, Big Daddy’s business is almost certain to fail, and Mawl & Mawl loses a tenant. If Big Daddy stops construction and buys out his current lease obligation, Bill Toosuit loses his construction project and Mawl & Mawl loses a long-term tenant. Can Big Daddy get out of his lease obligations? And his construction contract? Are there other options to get to a win-win?
Continue Reading Can COVID-19 Trigger a Force Majeure Defense?

Woman hangs a card with information about the store closing on a shop window due to the coronavirusWanting to diversify his investments, Ernest “Big Daddy” Bux signed a franchise agreement with GA Fitness last year. Construction by Big Daddy’s contractor Bill Toosuit is scheduled to be completed for in time for an early May grand opening in the new strip center owned and managed by Mawl & Mawl. Last week, in response to the COVID-19 pandemic, the town’s mayor and the state governor prohibited any gathering of more than 10 people and directed that all bars, restaurants and gymnasiums close. Now that gymnasiums are prohibited from opening, Big Daddy’s business is almost certain to fail, and Mawl & Mawl loses a tenant. If Big Daddy stops construction and buys out his current lease obligation, Bill Toosuit loses his construction project and Mawl & Mawl loses a long-term tenant. Can Big Daddy get out of his lease obligations? And his construction contract? Are there other options to get to a win-win?
Continue Reading Can COVID-19 Make a Contract Impossible to Perform?