Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Pandemic Threatens to Flood Courts With Contract Lawsuits

March 26, 2020, 10:55 AM

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 ...