We are working remotely, and we are agile. We are contactable via normal means – mobile phone/email, along with Skype and Facetime.
The pandemic has placed unprecedented pressure on our dental, medical, veterinary and allied health clients. We are cognisant of the social and family pressures our clients are facing, let alone the increasing commercial pressures.
For our existing clients, or new clients, reach out if you need urgent commercial assistance or general legal advice – a quick reassuring chat is, of course, gratis and if you need further engagement from us, we can work out expenses between now and when your practice returns to normal.
Below are examples of some special challenges and considerations for you and your practice and we invite all health practitioners to reach out if you are in need.
Practice owners:
Your Premises Lease:
Commercial negotiations on your premises lease with your landlord.
A damaged/destroyed premises is usually the only lease provision for a rent furlough or decrease.
Non-payment of rent may breach your lease so ensure you have commenced negotiations with the landlord.
We had known that Government directives to landlord/tenant emergency rights and tenant relief were imminent. Relief formally arrived on April 8, 2020 with the release of the National Cabinet Mandatory Code of Conduct (“the Code”). You should cease any relief negotiations which you may have commenced to take into account the ramifications of this binding Code – refer our separate letter also attached for your information.
Whilst closing your premises or heavily reducing opening hours had previously been a breach of the lease, a landlord can no longer impose penalties for doing so. Current social distancing recommendations and infection control processes must of course apply.
Dealing with landlord breaches (eg fixing persistent leaks, air-conditioning replacement etc) and negotiating set-offs for any landlord obligations that have historically been overlooked.
Your Practice
· Negotiations with your suppliers.
· What to do with your employees?
· Urgent practice sales and expedited due diligence and negotiations through to a quick settlement.
o Where necessary, we are seeing deferred purchaser payment schemes.
· A proposed capital injection from in house associate practitioners becoming 50/50 equity owners can be even further expedited.
· Swift shareholder/partnership/associateship agreements to provide comfort going forward for multiple owner practices. These agreements are where owners look to for guidance in crisis; without an ongoing agreement, your risk level increases, particularly if your practice is facing uncertainty and even litigation.
· General advice for multiple practice owners.
Contractors/service providers/potential practice purchasers/employees:
· Negotiations with your employer/principals, particularly over unpaid treatments/commissions.
· Opportunities for quick outright practice acquisitions, along with expedited due diligence and negotiation.
· Expedited equity associateship/partnership purchases for existing associate practitioners looking to purchase a percentage interest in their employer’s existing practice.
Premises owners:
Negotiations with your tenants on rent/outgoings and general lease breaches. We had known that Government directives to landlord/tenant emergency rights and tenant relief were imminent. Relief formally arrived on April 8, 2020 with the release of the National Cabinet Mandatory Code of Conduct (“the Code”). You should cease any relief negotiations which you may have commenced to take into account the ramifications of this binding Code – refer our separate letter also attached for your information.
Ensuring your landlord obligations are up to date, particularly if you have common or shared services with multiple tenancies – are your common area infection controls satisfactory?
Ensuring you have no historical or ongoing landlord premises or services breaches. These are high risk areas which unnerved tenants may use to negotiate rent relief.
We are also experiencing a marked upswing in wills and powers of attorney queries and, generally, clients wanting to put their affairs in order and discuss succession planning. We advise all clients to ensure their wills and powers of attorney are up to date especially when they have had a significant commercial matter finalised or other significant change in their personal circumstances or assets.
Whitehead Legal can work with you remotely and our hours are a flexible 5am – 9pm. We are ready to support your needs and we wish you and your practice and your families well.