The Latest episode of my Entertainment Law podcast, Entertainment Law Update, is now available for your enjoyment. Listen here, or subscribe and download in your favorite podcast listening app. Show notes are located at www.entertainmentlawupdate.com/119
BREAKING: STATES CANNOT BE SUED FOR COPYRIGHT INFRINGEMENT- YES NORTH CAROLINA, YOU CAN BE A PIRATE.
THIS LAND IS YOUR LAND – Court declines to rule on Public Domain Status
PELOTON SETTLES AND DISMISSES COPYRIGHT INFRINGEMENT
LED ZEPPELIN WINS ON APPELLATE: INVERSE RATIO DEAD
UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
KATY PERRY VERDICT WIPED OUT
DISNEY WINS INSIDE OUT CASE BY “MOODSTERS” CREATOR
BILLIONS CLAIMS DISMISSED (FOLLOW-UP)
PRODUCTION COMPANY FOR SHIPBOARD REALITY SHOW NOT LIABLE FOR CREWMAN’S INJURY
FIFTH CIRCUIT SETS CLEAR START-LINE FOR STATUTORY DAMAGES
ADULT ENTERTAINMENT SITE SUED DUE TO ADA
ELECTION YEAR RUNDOWN: FEEL THE BERN EDITION (BY POPULAR REQUEST @MENDEZMUSIC)
NEW FEE SCHEDULE HERE FOR COPYRIGHT OFFICE
Tamera’s guest appearance on The State Bar of Texas podcast
With Covid-19/Coronavirus causing cancellation of events and transactions around the globe, people are naturally looking at whether they must still perform their contractual obligations and whether they are entitled to refunds of deposits and advance payments they've made.
Most contracts do include a so-called “force majeure” clause as part of what's usually considered the boilerplate. Contract language that's fairly universal and non-negotiatiable. But these clauses are so rarely examined carefully, many of us just assume that events like the current pandemic are covered. Unfortunately, that's not always the case.
What is “force majeure”?
A force majeure clause (the term is French for “superior force”) is a contract provision that allows a party to suspend or terminate performance of its obligations when certain circumstances beyond their control suddenly occur, and thus make that party's performance either inadvisable, impractical, impossible, or even illegal.
The question of whether such a clause applies to a certain situation depends on a careful reading of the precise language of the clause, as well as evidence that the event was (a) unforeseeable, (b) beyond the party's control, (c) not the party's fault or responsibility, and (d) actually severe enough to render performance difficult or impossible.
Most force majeure clauses include a list of events that are agreed to be a basis for excuse of performance. Things like “acts of God” (which may include things like fire, flood, earthquakes, hurricanes, etc.), war, riots, strikes, and governmental actions.
When interpreting these kinds of provisions, Courts typically take a fairly narrow approach to construction of things, keeping the scope limited to things of a like kind (following a doctrine known as edjusdem generis. So, unless your clause actually includes reference to “epidemic”, “pandemic” or similar, such an event probably will not be deemed to provide an excuse for performance.
But check things carefully. In the current scenario, governments are taking action to control the disease by limiting public gatherings and events, so those actions may still trigger the clause's operation. But again, narrow interpretation is the rule. So, whether a state government's limits on events over a certain size right now can justify canceling an event 5 months away is an open question.
It's also important to note that most force majeure clauses include a notice requirement. So, if you're invoking the clause as an excuse not to perform an obligation, you'll likely need to send a formal, written notice of your suspension or termination of the contract in question.
Need help interpreting your force majeure clause, and determining a course of action? Give me a call. We're working remotely, but still looking out for you!