Virginia Court of Appeals Delivers Major Win for Landlords in CARES Act Nonpayment Dispute
On October 8, 2024, the Virginia Court of Appeals issued a pivotal ruling in Woodrock River Walk, LLC v. Rice, providing much-needed clarity for Virginia landlords navigating the federal CARES Act’s provisions.
The case stemmed from the landlord, who owned a property subject to the CARES Act, serving its tenants with a nonpayment notice. The notice required the tenants to pay their delinquent balance in full within five days or their lease would terminate and they would be required to vacate after 30 days. The landlord proceeded to file a Summons for Unlawful Detainer against the tenants 29 days after issuing the nonpayment notice (before the 30-day vacate period).
The tenants argued that the notice and subsequent Unlawful Detainer filing violated the CARES Act, arguing that under 15 U.S.C. § 9058(c)(1), landlords cannot require tenants to vacate a covered property before 30 days have passed from the notice date.
The Court disagreed with the tenants’ interpretation of the CARES Act, holding that the filing of an Unlawful Detainer does not require a tenant to vacate their premises. Rather, a tenant is only forced to vacate their premises when an eviction is carried out by a sheriff executing a writ of eviction. Further, the Court found that the nonpayment notice was valid, stating that the notice did not impose a requirement to vacate within five days but merely warned of lease termination if the balance remained unpaid. The notice properly informed the tenants of their 30-day window to vacate.
This decision is a major victory for landlords of CARES Act-covered properties in Virginia, who have suffered delays in nonpayment evictions since the CARES Act was adopted in March 2020. The decision establishes clearer guidelines, enabling landlords to proceed with eviction filings while respecting the 30-day notice period required by the CARES Act.
Crystal Kramer is the founder of Kramer Elias, PLLC, where her leadership and strategic thinking have shaped the firm into a trusted partner for clients navigating complex legal challenges. With a strong background in real estate litigation, landlord-tenant disputes, and civil litigation, Crystal brings a wealth of experience and a client-centered approach to every case.
