Client Alert: Protecting Against COVID-19, but Are You Protected Against Liability?

The practice of “social distancing,” widespread governmental restrictions, the overall economic downturn, and bans on social gatherings throughout the United States have left many businesses struggling to perform their contractual obligations. Indeed, the outbreak of COVID-19 has generated an unprecedented number of business closures, event cancellations, defaults under commercial and residential leases, delays and cancelations in the shipment of products, and a multitude of other interruptions of daily life and commerce. Whether needing to cancel an event, suspend performance under a lease or contract that no longer seems practicable, or excuse, enforce, or comply with closing and disclosure obligations under commercial contracts, companies and organizations should first consult their attorneys to ensure that they are following the proper procedures to minimize potential risk and liability. Below are some key issues to consider.