New York Law Journal: Bankruptcy Court Guidance on Force Majeure Clauses

June 5, 2020

O’Melveny partners John Rapisardi and Joe Zujkowski co-authored this bylined article discussing “existing guidance from bankruptcy courts addressing force majeure clauses, including a number of cases from the last financial crisis.”

“The global financial crisis resulting from the COVID-19 pandemic will undoubtedly raise issues related to the economic viability of countless contracts. Parties will invariably look to enforce force majeure clauses, which have become commonplace in standard form contracts in numerous industries, and may allow parties to either suspend performance or terminate the contract as a result of unforeseen circumstances,” the authors wrote.

“The types of unforeseen circumstances covered by force majeure clauses vary significantly depending on state law and the contract at issue, but often include natural disasters, commencement of a war or act of terrorism, political upheaval, significant labor disputes, or serious accidents.”

New York Law Journal subscribers can access the full article here.