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Business Interruption Contract Terms Coronavirus/COVID-19

Farella Braun + Martel LLP

Judges Wipe Out Business Interruption Policyholders’ First (And Only) COVID Win

Out of the 1,199 (and counting) trial court rulings addressing Covid business interruption lawsuits, only one of them resulted in a victory for the policyholder. Back in 2022, Baylor College of Medicine won $12 million from...more

Allen Matkins

Loss Of $6 Million In Deposits Is No Forfeiture

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VFLA Eventco, LLC v. William Morris Endeavor Entertainment, LLC, 2024 WL (March 6, 2024) involved the loss of $6 million in deposits that had been paid to secure the performances of various artists at a two day musical...more

Miller Canfield

Whose Risk? Impossibility and Frustration of Purpose in Michigan Leases

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Following the COVID‑19 pandemic, many parties and jurisdictions grappled with how shutdown orders affected their private contract rights. Our commentary from March 2020 is still a good starting point for evaluating these...more

Bradley Arant Boult Cummings LLP

Court Rejects Contractor’s Claim That COVID-19 Rendered Performance Impossible

A fundamental premise of contract law is that promises must be kept. If legally enforceable promises or “contracts” are not kept, courts may step in to enforce them by ordering performance, awarding damages, or granting some...more

Haight Brown & Bonesteel LLP

To pay or not to pay: knowing when you can and can’t rely on a Force Majeure

What is one way to prepare for the unexpected? A force majeure clause. The COVID-19 pandemic is the latest historical event that could neither be anticipated nor controlled by contracting parties at the time of contracting....more

Haight Brown & Bonesteel LLP

California Appeals Court Confirms the COVID-19 Force Majeure Event Did Not Excuse Contract Performance Merely Because It Became...

In West Pueblo Partners, LLC v. Stone Brewing Co., LLC, (2023 WL 3151827), the California Court of Appeal, First Appellate District, affirmed summary judgment on the basis that the COVID-19 pandemic force majeure event did...more

Bennett Jones LLP

Force Majeure Clauses and COVID-19 Pandemic Impacts—An Assessment of Ontario Judgments Three Years On

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Early on in the COVID-19 pandemic, many businesses began to scrutinize force majeure clauses in their commercial contracts and leases. Such contractual clauses, when engaged, either permanently or temporarily relieve the...more

Patterson Belknap Webb & Tyler LLP

Commercial Division Permits COVID-Related Contract Termination Pursuant to “Market Disruption” Clause

The onset of the COVID-19 pandemic in the Spring 2020 brought immense market uncertainty, which in turn placed serious strain on contractual relationships.  Amid that strain, a question on the minds of many commercial parties...more

Latham & Watkins LLP

“Ki(c)k“ boxing between tenants and landlords on rent payment obligations during Covid-related business closures continues even...

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This week, the Federal Court of Justice (BGH) issued its eagerly awaited judgment on rent payment obligations during COVID-related business closures. The judgment eases, at least in part, landlords and tenants’ uncertainty...more

Stikeman Elliott LLP

Cineplex Awarded $1.24 Billion in Lost Synergies from Failed Cineworld Acquisition: Company’s Pandemic Response Not Out of the...

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In a highly anticipated decision, the Ontario Superior Court of Justice – Commercial List held that Cineworld wrongly terminated its arrangement agreement to acquire Cineplex, which was awarded substantial damages....more

Foley & Lardner LLP

Potential Government Shutdown Friday: Are You Prepared?

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While Congress reached a last-minute deal for a continuing resolution on September 30, averting a government funding lapse, commonly known as a “shutdown,” it now appears that Congress may not reach another such deal by...more

Hogan Lovells

UK COVID-19 rent arrears: a further court case clarifying the position on commercial rent arrears

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A further judgment has been handed down in respect of COVID-19 rent arrears.  Implied terms, failure of consideration and set-off, were all cited as reasons why the tenant ought not to pay its rent during periods of...more

Cadwalader, Wickersham & Taft LLP

See You in September August 2021 - There Was No 'Gap' in the Lease Language: COVID Is Not a Casualty

On June 29, 2021, in The Gap, Inc. v. 170 Broadway Retail Owner, LLC, the New York Appellate Division, First Department, overturned an earlier decision by the New York Supreme Court and issued a decisive victory to commercial...more

Emmet, Marvin & Martin LLP

COVID-19 And The Law: Time To Check Your Force Majeure Clause

The ongoing COVID-19 pandemic continues to leave businesses in limbo. Prolonged government shutdowns and health restrictions designed to limit the spread of the coronavirus have disrupted contractual relations across the...more

Robinson+Cole Construction Law Zone

Revisiting Price Escalation Clauses in a Time of Skyrocketing Material Costs

Anyone monitoring construction industry trends is aware that the prices of raw construction materials, particularly steel and lumber, have been rapidly increasing since early 2020. Earlier this year, Associated Builders and...more

Pillsbury Winthrop Shaw Pittman LLP

Tour de Force: Evolving Force Majeure Considerations One Year into the Pandemic

As the pandemic has evolved, so too has the number and complexity of the questions arising in force majeure disputes. Regardless of whether a party is seeking to invoke, or defend against invocation of, a force majeure...more

Bradley Arant Boult Cummings LLP

Use the Force? Understanding Force Majeure Clauses

It has been said that, sooner or later, everything old is new again. In the wake of the novel coronavirus pandemic (COVID-19) sweeping the globe in 2020, a heretofore largely overlooked and even less understood nineteenth...more

Lowndes

COVID-19-Related Lease Modifications Raise New Issues of Liability for Unpaid Rent

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As pandemic-related shutdowns battered the retail and restaurant industry, many tenants avoided defaulting on their leases by negotiating a lease workout. These agreements often provided tenants some much-needed rent relief...more

Alston & Bird

Class Action & MDL Roundup – Winter 2021

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Welcome back to the Class Action & MDL Roundup! Our winter edition covers notable class actions from the fourth quarter of 2020. In this edition, we find a common theme among COVID-19 class actions, the Tampa 2 defends...more

Holland & Knight LLP

Look for More Landlord Protections in Retail Deferral Agreements and Extensions

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In April and May of 2020, the unprecedented challenges resulting from the COVID-19 pandemic and the related mandatory closures and restrictions on operations began to be felt by retail tenants across the United States. As a...more

Holland & Knight LLP

Southern District of New York Holds COVID-19 Pandemic Constitutes a Natural Disaster

Holland & Knight LLP on

"It cannot be seriously disputed that the COVID-19 pandemic is a natural disaster." This seemingly straightforward conclusion has only been reached in a small number of reported court decisions since the start of the...more

Goulston & Storrs PC

Law of the Land – Real Estate Litigation Newsletter - February 2021, Volume 1, Issue VI

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CASES OF NOTE THE SECRET'S OUT Victoria’s Secret Stores, LLC v. Herald Store Owner LLC, 70 Misc. 3d 1206(A) (N.Y. Sup. Ct. Jan. 7, 2021) A New York court recently held that a retailer’s closure due to a state law imposed...more

Goodwin

Supreme Court Favours Policyholders In COVID-19 Business Interruption Claims

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On 15 January 2021, judgment was handed down in the leapfrog appeal heard by the Supreme Court in the test case brought by the Financial Conduct Authority in relation to the responsiveness of business interruption insurance...more

Robinson+Cole Manufacturing Law Blog

Force Majeure Litigation Involving Manufacturers

Earlier this year, I provided our 2021 Corporate Compliance and Litigation Outlook for Manufacturers. I noted that even though we had been counseling a lot of manufacturers on force majeure events (i.e., the ability to...more

Hogan Lovells

Hotel contracts - Deferred or suspended rent due to Corona

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Does the owner bear the risk in case of bankruptcy? Due to the tense situation in the hotel industry, various lessees are currently approaching their lessors asking for deferral or abatement of rent payments for the...more

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