Does Force Majeure Apply? Answering Questions About Contracts in the Time of Coronavirus
New ebook from ALM's Law Journal Press addresses clients' questions about the enforceability of contracts in the wake of COVID-19.
June 23, 2020 at 03:54 PM
3 minute read
When New York's Metropolitan Opera was facing financial difficulties earlier this year, the opera's management decided to lay off all its union employees for the length of time that the opera would have to stay closed as a result of the coronavirus crisis. The opera cited the "force majeure" clauses in the various union contracts for the performers as the justification for its actions. What exactly is "force majeure" and how does it impact other companies and their contracts?
To help lawyers and their clients answer this and other questions, ALM's Law Journal Press announced the launch of a new ebook explaining the topic and the enforceability of contracts as a result of COVID-19.
COVID-19 as a Trigger for Force Majeure: A Global Survey is a collaboration between ALM editors and McDermott Will & Emery lawyers Lisa Richman, Shawn Helms, Jason Krieser and Matthew Cin. The authors developed the survey as a simple Q&A that allows companies and legal professionals to quickly access guidance for key questions across multiple jurisdictions, including globally. The ALM team designed the title to ensure easy access to answers as well as to the precedent underlying the guidance.
The publication, online and in ebook format, covers 10 countries and 16 U.S. jurisdictions, including California, New York, Illinois, Florida, Georgia, Pennsylvania, Massachusetts, New Jersey, Texas and Washington, D.C. The international sections help readers assess contractual obligations in Belgium, Canada, China, Germany, France, India, Italy, Japan, Mexico and the United Kingdom.
Each state and country covered in the book addresses a set of consistent questions, allowing lawyers, company executives and insurers to compare answers across jurisdictions. The questions are:
- How does COVID-19 affect contractual obligations?
- How are force majeure provisions interpreted in the relevant jurisdiction? Is there a key case that should be considered?
- What type of events qualify as force majeure in that jurisdiction? Under what circumstances will an event not expressly described be considered a qualifying event?
- Do courts there construe force majeure clauses broadly or narrowly and on what basis?
- What steps should you take if you think force majeure might apply to your contracts?
- Other than force majeure provisions in a contract, are there additional pathways in that jurisdiction for a contracting party to suspend or terminate performance without breaching the contract (e.g., doctrines of impossibility, impracticability, frustration of purpose)?
- Are there additional contract provisions or principles that a party can leverage as a pathway to excuse its lack of performance in that jurisdiction?
- What should you do if you receive a force majeure notice?
- Are there additional remedies for the counterparty (for example, step-in rights, right to cover, increased compensation, the ability to terminate or suspend performance in full or in part)?
The ebook can be purchased at Law Journal Press.
To read the press release, visit ALM's Press Room.
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllChicago Law Requiring Women, Minority Ownership Stake in Casinos Is Unconstitutional, New Suit Claims
5 minute readFree Microsoft Browser Extension Is Costing Content Creators, Class Action Claims
3 minute readFired by Trump, EEOC's First Blind GC Lands at Nonprofit Targeting Abuses of Power
3 minute readIndian Law Firm Cyril Amarchand Rolls Out AI Strategy, Adopts Suite of AI Tools
Law Firms Mentioned
Trending Stories
- 1Public Notices/Calendars
- 2Wednesday Newspaper
- 3Decision of the Day: Qui Tam Relators Do Not Plausibly Claim Firm Avoided Tax Obligations Through Visa Applications, Circuit Finds
- 4Judicial Ethics Opinion 24-116
- 5Big Law Firms Sheppard Mullin, Morgan Lewis and Baker Botts Add Partners in Houston
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250