Handling Contractual Disputes Linked to COVID-19On March 17, 2020 by Schnader in Client Alerts
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M. Christine Carty, Jonathan Hugg, and Janet Tasigianis have authored a client alert, “Handling Contractual Disputes Linked to COVID-19.” The Alert states in part:
COVID-19 is causing business disruption throughout the world.
Companies that obtain parts or finished goods from overseas in many industries already face delivery delays or cancellations due to factory closures caused by COVID-19. These lock-downs are causing disruptions in product manufacture, shipment, and delivery. Numerous large meetings and events have been cancelled in the U.S. and multi-national corporations based in the U.S. and elsewhere have imposed broad travel restrictions to prevent the spread of COVID-19. Further, various forms of “regional” shutdowns have started in the U.S. to control COVID-19.
These eventualities are expected to cause loss of revenue and/or inability to perform agreements by companies directly and indirectly impacted. There inevitably will be a rash of default-related disputes as parties, in good and bad faith, blame COVID-19 for their failure to meet contractual obligations. This Alert focuses on the potential defenses to claims of contract breach due to delays or non-performance.