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Monthly Minute | Global Supply Chain Issues
Exclusion clauses are a common feature of agreements of purchase and sale and other commercial contracts. While often subject to negotiation, parties sometimes proceed with standard form exclusion clauses that may inject...more
On May 31, 2024, the Supreme Court of Canada released its highly anticipated decision in Earthco Soil Mixtures Inc. v. Pine Valley Enterprises Inc., 2024 SCC 20 (“Pine Valley”), clarifying how contracting parties can exclude...more
Relying on a recent Michigan Supreme Court opinion, the Sixth Circuit Court of Appeals recently reversed a preliminary injunction requiring an auto supplier to supply products, holding that the parties’ purchase order...more
In this Insight, first published in PLC, Jennifer Badham discusses various attempts to address late payments and long payment terms that are a common problem in construction industry supply chains, including two recent...more
In our previous articles in the Supply Chain Survival Series, we discussed when a party’s failure to perform may (or may not) be excused by a contractual force majeure provision or by the common law doctrines of...more
Unit Petroleum Company v. Koch Energy Services, LLC is another force majeure case arising out of winter storm Uri. Unlike a similar case, summary judgment was denied because, said the United States District Court, The word...more
The case involved the sale of mist eliminators (demisters) from MECS Inc. to Axiall Canada Inc., an owner of a Canadian manufacturing facility. A key issue involved the terms of the parties’ contractual relationship as formed...more
Automotive supply contracts usually involve either the sale of goods or the provision of services. For that reason, determining what law applies to such contracts is often pretty simple — the Uniform Commercial Code (UCC)...more
MIECO, LLC v. Pioneer Natural Resources presented a challenge to a force majeure defense in a dispute arising from Winter Storm Uri. The defense carried the day....more
MIECO LLC v. Pioneer Nat. Res. USA, Inc. - May a seller of energy invoke force majeure to excuse its non-performance under a delivery contract – a contract that obligates the seller to deliver a particular quantity of...more
When negotiating supply contracts, the logistics of possible future litigation may not be top of mind. No one wants to talk about the details of their divorce while they are still in the honeymoon stage. And while the topic...more
With market volatility and supply chain constraints at record levels, manufacturers find themselves in unfamiliar territory with their supply base. As a consequence, manufacturers may need to protect production and reduce...more
Customers and suppliers may not willingly admit they are in distress, even when sources of economic pressure can be found everywhere. However, there are some practical steps you can take to increase your situational...more
With the COVID-19 pandemic, many industries experienced a major shift in how the personnel of key suppliers worked, with “nonessential” personnel in large part working remotely. When this shift to remote work first happened...more
Over the years, I have written a lot about manufacturing disputes and how to resolve them short of litigation. The first step often is looking at what the parties have agreed to in any applicable contracts about how to...more
It’s Friday at 3:00 p.m. at ABC Corp., and Mike from purchasing enters your office, slumping into his chair with a heavy sigh. Prime resin is in short supply. The next delivery will be weeks late, only half your order can be...more
After working through the weekend, you and your attorney are able to work out a plan for how to respond to your angry customer and your resin supplier. As you’re settling in at your desk at ABC Corp. feeling glad to have that...more
Given the recent expansion of the regulatory landscape in light of the ongoing events in Russia and Ukraine, namely the imposition of extensive sanctions on Russia (and certain Russian banks and nationals), there has been a...more
For more than 20 years, the supply chain issues were relatively minor, and problems with obtaining goods using Just in Time logistics and lowest price models were few. Supply was ample and demand steady. The last two years...more
Once a month, we cover an interesting topic in 60 seconds. This month, International Disputes Partner Thomas G. Allen shares his thoughts on the current supply chain crisis....more
A cancellation clause in a signed mobile phone supply contract was considered unduly onerous and not fairly and reasonably drawn to the purchaser’s attention to be incorporated by reference. ...more
The Situation: On 25 June 2021, the Full Court of the Federal Court in Hub St Equipment Pty Ltd v Energy City Qatar Holding Company [2021] FCAFC 116 (Hub v Energy City Qatar) refused to uphold the enforcement of an arbitral...more
Your company has just been awarded its biggest contract ever and everyone in the sales department is joyously high-fiving each other. This contract for clips will put the company on a whole new growth trajectory now that Air...more
WHAT YOU NEED TO KNOW IN A MINUTE OR LESS - The COVID-19 pandemic has disrupted supply chains around the world requiring many companies to adjust operations and their business. Supply chain litigation has not erupted as...more
Naturally, there will be disputes relating to COVID-19 and efforts to contain its spread. These will often be resolved through negotiation, particularly if the relevant contract clearly allocates the risk between the parties...more