Brace Yourself for Breach-of-Contract Lawsuits Due to Coronavirus, Attorneys Say
Disputes are surfacing as U.S. companies get notices that their China-based vendors can't honor contracts, because of business disruptions from coronavirus and quarantines.
March 11, 2020 at 01:10 PM
3 minute read
As the coronavirus continues disrupting global supply chains, hitting businesses' bottom lines hard enough to hurt, attorneys on the front line expect litigation to follow.
Lawyers expect to see breach-of-contract lawsuits between companies facing major supply-chain disruptions. Disputes are already surfacing as U.S. companies get notices that their China-based vendors of parts or materials can't honor contracts because of the "force majeure" event—meaning unforeseen, uncontrollable circumstances—brought about by coronavirus and mass quarantines.
The potential scope of future litigation is enormous.
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