The COVID-19 pandemic is expected to usher in a flood of litigation over force majeure (“acts of God) clauses in real estate contracts, and while each case will first examine the circumstances and language of the contract, lawyers say states will also differ in their interpretations.
Force majeure, common in real estate contracts, excuses parties from certain obligations in the wake of acts of God or other uncontrollable events, although the clauses generally don’t include the word pandemic, which opens the door to interpretation from state courts.
As far as states go, lawyers say it may be easier for parties to win force majeure protection in states like Florida and California, while the bar in New York court could be higher.
“We’re expecting an avalanche [of force majeure cases] later,” said Richard Holzheimer, a first-chair trial partner at McGuireWoods LLP.
Here, Law360 looks at the ways courts in New York, Florida and California may differ in their interpretation of force majeure clauses.
Read more at: https://www.law360.com/realestate/articles/1264603/how-courts-may-handle-real-estate-force-majeure-suits
