Pandemic Threatens to Flood Courts With Contract Lawsuits

Companies are concerned that the Covid-19 pandemic will force them to break their contracts. Attorneys expect breaches to spur many lawsuits whenever a sense of stability returns.

No Panacea: Some agreements have force majeure clauses that excuse a party from performing its obligations when unforeseeable circumstances prevent it. But the protection these provisions offer varies from contract to contract, and larger health-care companies might have a multitude of agreements to worry about fulfilling, attorneys say.

Wait for It: Companies can’t trigger the provisions until they’re facing specific breaches of contract, Pillsbury Winthrop Shaw Pittman LLP attorney says. “It’s not like ...