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Coronavirus/COVID-19 › Force Majeure Clause › Bankruptcy Court

Read guidance, analysis, and updates on the myriad issues arising from the global response to the COVID-19 pandemic. Updated hourly every day, the insights published here are written by leading lawyers and law firms... more +
Read guidance, analysis, and updates on the myriad issues arising from the global response to the COVID-19 pandemic. Updated hourly every day, the insights published here are written by leading lawyers and law firms helping to make sense of insurance, employment, tax, securities, M&A, risk management, and every other consideration touched by this crisis. Follow the channel for a daily email brief of the latest and best updates. less -
Holland & Knight LLP

Frustration of Purpose and Impossibility Doctrines in the COVID-19 Era

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In a survey of cases in federal, state and bankruptcy courts, commercial tenants seeking to delay or excuse the payment of rent because of pandemic-related downturns in business sometimes looked to the equitable doctrines of...more

Pillsbury Winthrop Shaw Pittman LLP

Tour de Force: Contract Terminations Due to COVID-19-Based Force Majeure – Natural Disasters

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A recent decision from the Southern District of New York may pave the way for broader excuse of performance in COVID-19 force majeure litigation after finding the pandemic is a “natural disaster” that is beyond the parties’...more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Denies Retail Debtor’s State-Law Based Arguments to Avoid Paying Rent During Chapter 11

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A recent Chuck E. Cheese decision rejects the debtor’s/tenant’s request to avoid paying rent based upon state law equity arguments. CEC’s leases expressly do not permit rent relief even if force majeure is triggered. ...more

Buchalter

Buchalter COVID-19 Client Alert: Chuck E. Cheese: The Mouse Who Didn’t Get the (Rent Relief) Cheese

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In a small victory for landlords of bankrupt tenants, the Bankruptcy Court for the Southern District of Texas has ruled that the Chuck E. Cheese parent company may not use its bankruptcy filing to avoid paying its rent. ...more

Bowditch & Dewey

Delaying the Inevitable? Pier 1, Chuck E. Cheese, and Rent Abatement in Bankruptcy

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The coronavirus pandemic has been particularly cruel to brick-and-mortar retail establishments. As rising infection rates force municipalities to roll back reopening plans, retail and hospitality businesses that rely on...more

Seyfarth Shaw LLP

New Decisions Give Further Guidance on Frustration of Purpose, Impossibility, and Related Doctrines

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As discussed in previous updates, courts across the country continue to grapple with the application of the legal doctrines of impossibility, frustration of purpose, and impracticability in breach of contract actions...more

Shutts & Bowen LLP

COVID-Confusion: Force Majeure and Executive Orders

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Amid the unprecedented conditions that businesses have been forced to operate under, real estate and construction professionals in particular may be struggling to navigate pandemic related legal challenges in their markets....more

Weintraub Tobin

Recent Case Confirms Need For Landlords And Tenants To Address Force Majeure And COVID-19 In All Current And Future Agreements

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While the effects of the COVID-19 health crisis have impacted daily life for months, the legal implications of this pandemic are just starting to develop. Unforeseen conditions often wreak havoc on existing contractual...more

Jones Day

Force Majeure Clause Triggered by Pandemic Shutdown Order Partially Relieves Chapter 11 Debtor from Timely Paying Postpetition...

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With their doors closed by mandatory government shutdown orders in effect until most states started gradually reopening in May and June, many businesses have found it difficult or impossible to satisfy their lease obligations...more

Pillsbury Winthrop Shaw Pittman LLP

Court Holds COVID-19 Executive Order Triggers Lease’s Force Majeure Clause, Excusing Some Rent Obligations

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Illinois Governor’s Executive Order prohibiting sale of food or beverages for on-premises consumption held to partially excuse restaurant tenant’s rent payment obligations. Bankruptcy Court finds that Executive Order...more

Ward and Smith, P.A.

Leases, Bankruptcy, and Coronavirus: Force Majeure Edition

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Many businesses in bankruptcy or heading that way – particularly retail establishments – face an uncertain future as states and cities impose closures and phased re-openings. If you lease your office, storefront, or...more

Hahn Loeser & Parks LLP

Illinois Bankruptcy Court Holds That Statewide Shutdown Order Triggered Force Majeure Clause

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Earlier this month, the United States Bankruptcy Court for the Northern District of Illinois held that a force majeure clause in a lease partially excused a restaurant from paying rent after the restaurant closed as a result...more

A&O Shearman

Northern District Of Illinois Bankruptcy Court Holds That Executive Order Barring Restaurant Operations On-Premises In Light Of...

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On June 2, 2020, Judge Donald R. Cassling of the United States Bankruptcy Court for the Northern District of Illinois held that a state executive order suspending dine-in services to address the COVID-19 pandemic (the...more

Blank Rome LLP

Illinois Bankruptcy Court Holds That Force Majeure Clause Excused Nonpayment of Rent Resulting from Government Restrictions on...

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In In re: Hitz Restaurant Group, the United States Bankruptcy Court for the Northern District of Illinois became the first court in the country to find that a force majeure clause excused nonperformance of contractual...more

Amundsen Davis LLC

Bankruptcy Judge Slashes Rent Due By Restaurant Tenant During COVID-19

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According to at least one bankruptcy judge sitting in the Northern District of Illinois, an appropriately drafted force majeure clause in a lease can excuse a debtor tenant from paying full rent during Illinois’ government...more

Akerman LLP

Bankruptcy Courts Continue to Accept Equitable Arguments for Deferring Rent Payments During the COVID-19 Pandemic

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Previously we reported on debtors’ appeals to bankruptcy courts’ general equitable powers for assistance in weathering the COVID-19-induced economic storm. ...more

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