How to Handle COVID-19 Force Majeure Claims

If the 2019 coronavirus disease (COVID-19) renders you unable to meet the terms of a contract or uphold the high professional standards you are used to, you are not alone. Many businesses across the country are struggling to meet agreements as a result of the pandemic, and some are already invoking force majeure.

Force Majeure: Challenges During a Pandemic

Chances are, you haven’t had to deal with many force majeure disputes in your years of practice. That’s because this provision governs situations that are beyond a company’s control, such as war and natural disasters. Further, even if you’re familiar with force majeure, a hurricane claim is sure to differ from a global health crisis.

With the seemingly intangible threat of a virus, contractual language will also be a crucial consideration. Some force majeure provisions may address epidemics, diseases, or public health emergencies explicitly; others will not. More provisions still will cover COVID-19 claims due to “acts of government,” like executive orders to stay home and close “non-essential” businesses. It will be largely up to courts and attorneys to determine which aspects of this global crisis constitute force majeure and which do not.

Another challenge the coronavirus pandemic presents in force majeure claims is the extent to which the virus affects a company’s ability to fulfill its contracts. Lawyers like you, for example, can fulfill the majority of their obligations to clients from home and without face-to-face meetings. On the other hand, a luxury goods manufacturer may be unable to operate without personnel and with an interrupted chain of suppliers and materials.

What Force Majeure Could Mean for Your Firm

This rarely invoked provision and the business disputes it may cause could bring more than a few clients to your firm. Business and contract law, particularly on an international scale, may be a lucrative practice during this widely unprecedented time. Given the uncertainty of the economy, however, you need to be smarter with your attorneys’ fees than ever before.

Fortunately, Structures can help. Our unique financial solutions include tax deferrals and customized payment schedules to help you meet the needs of your business while adhering to the law and protecting your bottom line.

With our team of consultants and financial professionals, you can take steps to secure the future of your firm and your practice.

Put yourself in the best position now, so you can continue to help your clients in the inevitable aftermath of these strange times.