Tag Archives: force majeure

Force Majeure and COVID-19: Illinois Bankruptcy Court Rules That Force Majeure Provision Partially Excuses Rent Payments

The United States Bankruptcy Court for the Northern District of Illinois ruled that a force majeure clause in a commercial lease partially excused a restaurant tenant from paying rent during the period of the Illinois state executive order restricting dine-in restaurant operations. This decision is one of the first to test the application of a force majeure clause in the COVID-19 pandemic.

To read the full text of this Duane Morris Alert, please visit the firm website.

Performance Under Cannabis Contracts During a Pandemic

The COVID-19 pandemic has wreaked havoc on nearly every industry in the global economy. The nascent and volatile cannabis industry was not exempt and, in some jurisdictions, has been impacted significantly due to local or state shelter or stay-at home orders. In most states where adult-use cannabis is legal, local and state governments have deemed cannabis businesses as essential and, thus, are permitted to continue operating notwithstanding local or state shelter orders. However, despite their characterization as essential businesses, many limitations imposed by local or state shelter orders have greatly affected the way cannabis businesses operate. As a result, cannabis businesses have experienced steep declines in their revenues and, in some instances, have left cannabis businesses unable to perform contractual obligations that they entered into pre-pandemic.

To read the full text of this article by Duane Morris partner Tracy Gallegos, please visit the Cannabis Business Executive website.

Force Majeure Events and E-signatures: COVID-19 Guidance for Businesses in Vietnam

The COVID-19 pandemic has given rise to many questions regarding force majeure and e-signatures. In particular, parties to commercial contracts are keen to know (i) whether they can be released from liabilities by relying on a force majeure clause and (ii) whether they can execute contracts by electronic signatures instead of the traditional “wet ink” signatures, which have become almost impossible in the context of the COVID-19 pandemic.

To read the full text of this post by Duane Morris Vietnam partner Giles Cooper, please visit the Duane Morris Vietnam Blog.

Is COVID-19 A Contractual “Get-Out-Of-Jail-Free” Card?

COVID 19 is having a massive impact on supply chains and business continuity and, post lockdown, questions will be asked about who pays for this. The knee-jerk response of many businesses is that the pandemic is a unique, unforeseeable “Act of God” and that businesses which have furloughed staff or been forced to close during the lockdown or have had difficulties with their own supply chains or customers reducing purchase volumes, have no liabilities to or remedies against others for the consequent losses sustained. The reality is that on a case by case basis, businesses already adversely affected by this pandemic may find that contractual claims are being made against them or that they have a route to mitigate their losses by looking at their own contractual or statutory rights.

To read the full text of this post by Duane Morris partner Susan Laws, please visit the Duane Morris London Blog.

Vietnam’s Renewable Energy Industry Amid Covid-19: Facts, Force Majeure and (Patchy) Government Support

Vietnam’s renewable energy development over the past three or so years can variously be described as frenetic, chaotic and heartening. Look past all the noise about non-bankable agreements, insufficient transmission infrastructure and bureaucratic black holes, and it’s clear the market has spoken. Vietnam currently has the largest installed solar capacity in Southeast Asia and is taking strides on wind too. Between May and July 2019, an incredible 82 ground mounted solar plants were connected to the national grid (total of 4,464 MW), more than 400% the target that had been set for 2020. The Ministry of Industry and Trade recently announced that the country is aiming to boost power output produced by renewable energy to about 23% by 2030.

The sector as a whole is also poised on the brink of a new phase. Feed in tariffs are coming to an end, low hanging fruit projects have been developed and local banks’ capacity to continue to finance development is stressed. Meanwhile, energy demand rises steadily and right-minded global citizens are clamoring for an end to coal and a rapid transition to renewable energy sources.

Into this heady mix arrived a novel corona virus and the disease known as COVID-19.

To read the full text of this post by Duane Morris Vietnam partner Giles Cooper, please visit the Duane Morris Vietnam Blog.

Construction and Engineering in the UK in Challenging Times

The COVID -19 pandemic has already had a massive effect on global economies. Its impact has been unprecedented and there is a degree of uncertainty on almost every facet of daily life.

To read the full text of this post, which seeks to touch upon issues that may affect those in the UK construction industry specifically (though certain elements will no doubt equally apply across other sectors), please visit the Duane Morris Construction Law Blog.

What Can I Do When My Singapore Wedding’s Stuck in COVID-19 Limbo?

The global outbreak of the novel coronavirus (COVID-19) is a public health emergency of international concern. In Singapore, the government has acted swiftly to impose restrictions. At the time of this article, all gatherings have been limited to 10 persons until 30 April 2020, and all events of 250 people or more have been suspended until 30 June 2020.

The situation is evolving rapidly and we expect these regulations to be tightened or extended. One group that has been impacted are couples with upcoming wedding celebrations, as well as other events organisers. If you are in this position, you may be wondering whether you are entitled to cancel or postpone your event, without losing your deposit, or worse, being forced to pay the full agreed price to the venue and your vendors. This article is meant to be a simple guide to navigating the process.

To read the full text of this article by Duane Morris & Selvam director Daniel Soo, please visit the firm website.

Mexico’s Federal Government Declares COVID-19 Health Emergency

On March 30, 2020, the Mexican federal government declared a health emergency and issued stricter rules aimed at containing the fast-spreading COVID-19 virus after the number of cases surged past 1,000 and the death toll rose sharply in the country. An important part of the statement made by the Mexican authorities relates to the classification of COVID-19 as a force majeure event, which may have an impact in contractual relationships throughout the country.

To read the full text of this Duane Morris Alert, please visit the firm website.

The Time to Talk Is Now About Coronavirus and Construction in the UK

In an industry of seemingly ever-tighter margins across the board, it is perhaps unsurprising that the construction industry has fought to continue through the current coronavirus crisis as much as it has.  However, many in the industry have stopped work and shut down sites and, despite the current and perhaps somewhat over-optimistic view from the government that work can continue whilst still complying with social distancing rules, it seems inevitable that all non-essential work will stop very soon.

To read the full text of this post, please visit the Duane Morris Construction Law Blog.

Coronavirus and Construction Contracts

As you have undoubtedly heard, coronavirus disease 2019 (COVID-19) is affecting the global construction industry.

Notably, as of March 17, Boston halted all construction jobs in the city for two weeks due to the COVID-19 pandemic. This decision has affected approximately 21.4 million square feet of new or renovated development across 97 projects. Other municipalities have implemented travel restrictions and shelter-in-place orders requiring individuals to stay at home except as necessary to provide certain essential business and government services. These domestic actions, coupled with tighter border controls and quarantines at the international level, will inevitably result in supply chain disruption and labor force shortages.

To read the full text of this Duane Morris Alert, please visit the firm website.