CHICAGO: 312 332 7555 SCHAUMBURG: 847 705 7555
Blog Post
Coronavirus – Legal Implications
Theodore M. McGinn • Mar 06, 2020
Coronavirus has gripped this nation in a furious way. While most parties are considering potential health ramifications and actions to protect their wellbeing (rightfully so), attorneys are looking at potential implications for their client. Because the world is a global place, events taking on the other side of the globe can have direct impact. The Coronavirus pandemic may interfere with your ability to meet your contractual obligations. Furthermore, if currently negotiating a contract, the potential risk that an escalation of the outbreak could further interfere with your business should be a factor considered in the terms under the contract.
Existing Contracts.
Any business that relies on suppliers with international operations should look at their existing customers agreements and determine whether there are clauses that could provide protection in the event of an interruption in supply. Some contracts may have provisions that excuse delayed performance. In addition, many contracts could include “force majeure” clauses. A force majeure event would be any action that generally prevents a party from being able to perform under the contract that is beyond the reasonable control or not reasonably foreseeable at the time of the contract. Even if the contract does have a force majeure clause, a party still needs to pay close attention to whether notification requirements have to be met in order to rely upon such provision. Depending on the contract, the failure to send a notice could constitute a waiver under such provision.
Future Contracts.
Many contracts contain provisions with strict deadlines. Because of the uncertainty related with your supply chain, you should negotiate language that sets a more flexible schedule.
Alternative Means of Performance.
Relying on force majeure may be challenging. As a result, a party should consider whether there is an alternative way to comply with the terms of the agreement. Furthermore, are there other means to mitigate the damages that would be sustained? In the event of litigation due to a breach of contract, it is critical that you take all reasonable action to minimize damages.
Insurance Coverage.
You should inquire as to whether you have existing liability or business interruption insurance coverage. From time-to-time, some businesses will acquire such coverage, which could cover losses in the event there is an interruption in your business activities. You should review any insurance policies to determine the grounds with which you have obtained the benefit of such insurance coverage. Moreover, similar with force majeure, you should consider the notice requirements and ensure that you do not waive any rights under the policy due to a late notice.
Certainly, everyone should consider the health ramifications of a potential pandemic of Coronavirus. Moreover, business owners should also look at their business operations and begin to plan for potential interruptions of their business and/or determine their contractual rights. Finally, any business owner should consult with an attorney to further evaluate their potential risks and rights under existing contracts.
If you have any questions about this article or have any questions relating to the legal implications due to the Coronavirus, please contact attorney Theodore M. McGinn at (847) 705-7555 or tmcginn@lavellelaw.com.
More News & Resources
Lavelle Law News and Events
On April 23, 2024, the Federal Trade Commission (“FTC”), in a 3-2 vote, issued its final Non-Compete Clause Rule (“Rule”) which prohibits noncompete clauses in agreements between employees and their workers. This highly anticipated Rule follows a substantially similar proposed rule from the FTC released on January 19, 2023. The Rule will not become effective until 120 days after publication in the Federal Register, and covered employers will be required to comply with the Rule by that effective date, which could come as early as August of this year. By the FTC’s estimate, this ban could affect up to one in five American workers.
When determining how to distribute the marital assets between parties to a divorce, the division of an interest in a small or medium business owned by one or both of the parties is more complex and requires a careful examination of the value of the business or business interests. The Court must determine the value of the business interest in order to determine how to equitably divide all marital assets in which the parties have an interest. The Court will regularly rely on the valuation reports of the parties' experts regarding the value of the business. The business valuation expert will utilize a number of different methods in determining the value of a business. The professional appraiser will examine and assess the value of the business and provide expert testimony and reports to the parties and the Court.
Vehicle dealerships particularly have recently found themselves needing to navigate the complex terrain of adhering to the BIPA’s stringent requirements to avoid being targeted through lawsuits. There has been a recent noticeable uptick in class action lawsuits under the BIPA, serving as a critical wake-up call for the automotive retail industry, highlighting the need for dealerships to review and enhance their practices if they are using biometric technology.
Join us for this seminar as Lavelle Law attorneys Kelly Anderson and Chance Badertscher will unpack the complexities of Illinois commercial leases in order to prepare you for strong leasing relationships.
Between the state of Illinois and federal courts, there are well over 200 statutes that deal with fee shifting provisions. They lay out ways in which legal fees may become the responsibility of one party in a lawsuit. In this video, Lavelle Law Associates Jodie Upchurch and MaryAllison Mahacek discuss ways that these provisions should be included in contracts and how they can be used advantageously.
Lavelle Law real estate attorney, Chance Badertscher, recently participated in a Straight Up Chicago Investor Podcast and shared his expertise on what to expect on the final walkthrough before your real estate closing. He breaks it down and shares tips for both the buyer and the seller.
Between the state of Illinois and federal courts, there are well over 200 statutes which deal with fee shifting provisions. They lay out ways in which legal fees may become the responsibility of one party in a lawsuit. Lavelle Law Associates Jodie Upchurch and MaryAllison Mahacek discuss ways that these provisions should be included in contracts and how they can be used advantageously.
Our team worked very quickly (in a matter of just a few days) to establish temporary guardianship of the client, and – most importantly – successfully argued for the judge to authorize the guardian to execute and finalize the estate plan documents on the client’s behalf. Finalizing the estate planning documents in advance of the client’s death saved the estate and the client’s family nearly $500,000 in estate taxes.
Businesses classified as medical spas have a variety of special considerations that must be adhered to in the state of Illinois. In this video, Lavelle Law attorney Eso Akunne discusses critical issues that must be met to operate with state laws. If you are interested in getting involved in this rapidly growing industry be sure to watch this video.
The IRS recently announced that almost 940,000 people across the nation have unclaimed refunds for tax year 2020 but face a May 17 deadline to submit their tax returns. The IRS estimates more than $1 billion in refunds remain unclaimed because people have not filed their 2020 tax returns yet. The average median refund is $932 for 2020. The IRS estimates that about 36,200 Illinois taxpayers may lose $40,608,000 in potential refunds.
STAY UP TO DATE
Subscribe to our newsletter
OUR LOCATIONS
Phone: 312 332 7555
Fax: 312 332 4611
Fax: 847 705 9960
Created by Olive + Ash.
Managed by Olive Street Design. 