Is the Coronavirus Force Majeure?
There is a lot of bad news on TV, and it’s not easy to keep track of what’s going on. What you should know is that the courts are reopening, even if in limited capacity, and so it’s time again to dig through your mail (and check your mail box again if you’re not sure it’s still being delivered.) Even if your usual day-to-day concerns like employment are still intact, you should look through any contracts you’ve signed recently for a clause called Force Majeure.
As explained by Cornell Law School, Force Majeure is “a provision commonly found in contracts that frees both parties from obligation if an extraordinary event prevents one or both parties from performing. These events must be unforeseeable and unavoidable, and not the result of the defendant's actions, hence they are considered ‘an act of god.’” Around this time of year, Louisiana residents usually think of hurricanes, but not every severe weather event will count as Force Majeure, and not every cause for a Force Majeure clause to take effect is as easily provable as severe weather. For an event to be considered Force Majeure, it must be both devastating on a large scale and it must be something that the entity or persons not holding up their end of the bargain could not have reasonably prevented, or even planned for— I know, many people are asking themselves right now, “What does ‘reasonably’ mean?”
Will a court consider it “reasonable” for a hospital to fail to provide its staff with protective masks and gloves due to sudden shortages of supplies? Will a judge decide that failure to pay rent is “reasonable” for hospitality workers laid off during the pandemic? Would you be held liable if your reason for failing to travel isn’t considered “reasonable?” What happens if your contract is with someone in a Common Law state, or if it has no mention of Force Majeure?
The answer to all of these questions is that you need a lawyer on your side. Every contract is different, and every Force Majeure clause is supposed to exist for the purpose of figuring out how to keep all parties as safe and prepared as they can be. Here at The Law Office of Christopher Szeto, navigating Breach of Contract issues is second nature to us, and we are proud to proactively take care of not only cases, but the people we represent. It’s important for all of our safety to keep physical distance, but I believe that there is no more urgent time for our community to work together.
