News & Analysis as of

Frustration of a Common Purpose

Holland & Knight LLP

Commercial Impracticability and Frustration of Shipping Agreements in Uncertain Times

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The U.S. Trade Representative (USTR) announced a notice of action on fees for operators of Chinese-built ships and vessel owners and operators of China after it issued a proposed notice with fees and restrictions on maritime...more

Littler

Ontario, Canada Appeal Court Confirms Employment Contract Frustrated by Employee’s Refusal to Comply With COVID-19 Vaccination...

Littler on

In Croke v. VuPoint System Ltd., 2024 ONCA 354, the Court of Appeal for Ontario (OCA) upheld the Superior Court of Justice – Ontario (SCJ)’s summary judgment decision that an employee’s refusal to comply with their employer’s...more

Ius Laboris

Canadian court upholds termination of unvaccinated worker

Ius Laboris on

The Ontario Court of Appeal recently held that an employee’s failure to meet COVID-19 vaccination requirements imposed by a third party amounted to frustration of the employment contract. As a result, there was no obligation...more

Littler

British Columbia, Canada Appeal Court Rejects Employer’s Frustration Defence in Circumstances Connected to COVID-19

Littler on

In Aldergrove Duty Free Shop Ltd. v. MacCallum, 2024 BCCA 28, the Court of Appeal for British Columbia (BCCA) dismissed an employer’s appeal when it agreed with the lower court that the employer could not use the frustration...more

Freiberger Haber LLP

The First Department Dismisses COVID-19 Based Frustration of Purpose and Impossibility Related Defenses In Rent Arrears Action

Freiberger Haber LLP on

Among the problems resulting from COVID-19, is the pandemic’s effect on business. Numerous businesses were forced to close due to lock downs and supply chain issues. The economic slowdowns and business closures caused by...more

Miller Canfield

Whose Risk? Impossibility and Frustration of Purpose in Michigan Leases

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Following the COVID‑19 pandemic, many parties and jurisdictions grappled with how shutdown orders affected their private contract rights. Our commentary from March 2020 is still a good starting point for evaluating these...more

Barnea Jaffa Lande & Co.

Doing Business in Israel: Effects of War in Israel on International Companies

Barnea Jaffa Lande & Co. on

Operation Swords of Iron constitutes a state of emergency in Israel unlike any other in past decades, with at least 1,400 citizens killed and some 300,000 reservists called up for duty. This state of emergency is being felt...more

Quarles & Brady LLP

Supply Chain Survival Series: Impracticability, Impossibility and Frustration of Purpose (Article #10)

Quarles & Brady LLP on

In our previous article, we discussed the concept of force majeure, which can excuse parties from performing their contractual obligations in certain circumstances. As explained in that article, force majeure is a contractual...more

Littler

Ontario, Canada Court Finds Employment Contract Frustrated by Employee’s Refusal to Become Vaccinated Against COVID-19

Littler on

In Croke v. VuPoint Systems Ltd., 2023 ONSC 1234, Ontario’s Superior Court of Justice decided that an employee’s refusal to comply with mandatory COVID-19 vaccination requirements resulted in the frustration of the parties’...more

Foley & Lardner LLP

Three Key Defenses to Contractual Performance: Force Majeure, Commercial Impracticability, and Frustration of Purpose

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With disruptions affecting every aspect of the supply chain, companies are increasingly encountering legal arguments offered to justify a failure to meet supply obligations. This article in the Supply Chain Disruption Series...more

Walkers

Can sanctions on Russia provide a defence for non-performance under Cayman Islands law contracts?

Walkers on

The Insolvency and Dispute Resolution team at Walkers in Dubai continue to advise on the impact of the recent sanctions imposed on Russia in an offshore context, including whether such sanctions can give rise to a defence for...more

Harris Beach Murtha PLLC

Important Connecticut Supreme Court Landlord-Tenant Decision Addressing the Implications of the COVID-19 Pandemic and Resolving...

On May 10, 2022, the Connecticut Supreme Court issued an extremely important decision in AGW Sono Partners, LLC v. Downtown Soho, LLC, et al. (SC 20625), addressing several COVID-19 related defenses being asserted by...more

Jones Day

The War in Ukraine: Downstream Ripple Effects on the European Gas Market

Jones Day on

European energy companies face unprecedented uncertainty as a result of Russia's invasion of Ukraine. A potential reduction or cessation of Russian gas imports is not unforeseeable and would invariably affect all market...more

Tucker Arensberg, P.C.

Pennsylvania Superior Court Holds that Doctrines of Frustration of Purpose and Impracticability/Impossibility of Performance are...

Tucker Arensberg, P.C. on

In the first Pennsylvania appellate case addressing the effects of government-ordered business closures due to the Covid-19 pandemic on a commercial lease default, the Pennsylvania Superior Court has held that the traditional...more

Kilpatrick

Is There Liability for Terminating Contracts Related to Russia?

Kilpatrick on

In part two of our discussion of commercial issues surrounding the Russian invasion of Ukraine, Thomas G. Allen, Kilpatrick Townsend Partner and Global Lead for International Disputes, focuses on the legal implications of a...more

BCLP

Sanctions on Russia: what about your contracts?

BCLP on

As you will know, an unprecedented sanctions regime has been imposed by the UK, EU and US in response to Russia’s actions concerning Ukraine. But what issues could arise for your contracts with Russian or Ukrainian parties or...more

Jones Day

Conflict in Ukraine: Liability for Non-Performance Under English Law

Jones Day on

The ongoing conflict in Ukraine, and the severe sanctions imposed by governments globally in response to Russia's aggression, are having extreme effects on parties' legal obligations, and are drastically altering the...more

BCLP

Frustration and rent abatement in commercial leases - Hong Kong Court rules on the impacts of COVID-19 pandemic

BCLP on

More than two years into the COVID-19 pandemic, anecdotal reports are that there have been many disputes between landlords and tenants about how the pandemic might affect the tenant’s payment obligations. Tenants reportedly...more

Nutter McClennen & Fish LLP

Notes on BLS/Social Law Program and 2021 BLS Decisions—Including AG Healy v. Uber Technologies

In January, the Social Law Library sponsored the Business Litigation Session 2021 Year in Review. The panel included Judge Kenneth Salinger, the BLS Administrative Justice, as well as Michael Tuteur and Andrew Yost, attorneys...more

Kilpatrick

5 Key Takeaways | Contractual Approaches to Supply Chain Disputes: Is it Time for a New Paradigm?

Kilpatrick on

Thomas G. Allen, Kilpatrick Townsend Partner and Global Lead for International Disputes, discussed supply chain disputes and provided strategies for managing future contracts during his recent presentation at the Asia Annual...more

Goulston & Storrs PC

ICSC U.S. Law Conference 2021

Goulston & Storrs PC on

The 51st Annual International Council of Shopping Centers (ICSC) U.S. Law Conference was held earlier this month in San Francisco from November 3 – 5, 2021. Chaired by our own David Rabinowitz, the event hosted more than 700...more

Lowenstein Sandler LLP

Current Trends in Force Majeure Clauses in the Wake of COVID-19: Frustration of Purpose as an Alternative Argument

Lowenstein Sandler LLP on

In the wake of COVID-19, litigants have increasingly sought to excuse contractual performance by invoking force majeure clauses. In the early stages of the pandemic, there were few reported decisions on these matters, and the...more

Weintraub Tobin

How New Legislative Policy May Affect COVID-Related Lease Disputes

Weintraub Tobin on

Over the last eighteen months, we have been forced to devote significant resources to interpreting how largely-forgotten legal doctrines apply to real estate contracts in a post-COVID world. These principles, including force...more

Cadwalader, Wickersham & Taft LLP

See You in September August 2021 - There Was No 'Gap' in the Lease Language: COVID Is Not a Casualty

On June 29, 2021, in The Gap, Inc. v. 170 Broadway Retail Owner, LLC, the New York Appellate Division, First Department, overturned an earlier decision by the New York Supreme Court and issued a decisive victory to commercial...more

Kramer Levin Naftalis & Frankel LLP

Sustained or Transitory? Delaware Court of Chancery Finds No MAE Absent Proof of Durationally Significant Effect on Business

Prior to the Delaware Court of Chancery’s opinion in Akorn, Inc. v. Fresenius Kabi AG, C.A. No. 2018-0300-JTL, 2018 WL 4719347 (Del. Ch. Oct. 1, 2018), aff’d 198 A.3d 724 (Del. 2018), no Delaware court had found the existence...more

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