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    Dispute Resolution round-up - June 2020
    2020-06-22

    Welcome to the inaugural edition of our new newsletter, which is intended to capture the key developments in the English disputes arena over the past three months. We hope that you will find it an interesting read, whether you are a litigator, either in private practice or in-house, or a generalist wanting to keep abreast of the goings on in this space. We also hope that you will pass it on to any of your colleagues who may find it useful.

    Filed under:
    European Union, United Kingdom, Arbitration & ADR, Company & Commercial, Insolvency & Restructuring, Litigation, Public, Travers Smith LLP, Brexit, Force majeure, Coronavirus
    Location:
    European Union, United Kingdom
    Firm:
    Travers Smith LLP
    Three of a kind: Federal Court provides clarification on key issues in determining unfair preference claims
    2020-06-19

    In three related judgments delivered on 27 May 2020, Justice Davies found in favour of the liquidators of Gunns Limited (in liquidation) (Liquidators) against creditors Badenoch Integrated Logging Pty Ltd (Badenoch),[1] Bluewood Industries Pty Ltd (Bluewood),

    Filed under:
    Australia, Insolvency & Restructuring, Litigation, Hall & Wilcox, Force majeure
    Authors:
    Hector West , Andrew Giorgi
    Location:
    Australia
    Firm:
    Hall & Wilcox
    Illinois Bankruptcy Court Takes First Swing at Applying Force Majeure to Nonperformance Due to COVID-19
    2020-06-18

    With the onset of closures and quarantines early this year due to the spread of COVID-19, businesses across the country were confronted with the issue of how to perform their contractual obligations while they were unable to operate under normal conditions (or, in some cases, unable to operate at all). In many instances, they could not.

    Filed under:
    USA, Illinois, Company & Commercial, Insolvency & Restructuring, Litigation, Cohen & Gresser LLP, Force majeure, Coronavirus
    Authors:
    Daniel H Tabak , Lauren J Salamon
    Location:
    USA
    Firm:
    Cohen & Gresser LLP
    Bankruptcy Court Holds That Stay at Home Order Triggers Force Majeure Clause in Restaurant Lease
    2020-06-18

    For months, landlords and tenants impacted by the COVID-19 pandemic have wondered whether force majeure clauses in leases would excuse a tenant's non-payment of rent. On June 3, 2020, a Bankruptcy Court for the Northern District of Illinois offered us an early look into how courts might interpret such clauses in the midst of the current crisis. In In re Hitz Restaurant Group, No. 20-B05012, 2020 WL 2924523 (Bankr. N.D. Ill. June 3, 2020), the Bankruptcy Court ruled that Executive Order 2020-7, the Stay-at-Home Order (the "Order") enacted by Illinois Governor, J.B.

    Filed under:
    USA, Insolvency & Restructuring, Real Estate, Winston & Strawn LLP, Landlord, Force majeure, Coronavirus
    Authors:
    Amanda L. Groves , Kristan Q. Laden , David B Halberstein
    Location:
    USA
    Firm:
    Winston & Strawn LLP
    Court Rule Force Majeure Clause Reduces Tenant's Rent by 75% Due to COVID-19
    2020-06-17

    Ever since governors across the country implemented Stay at Home orders to slow the spread of COVID-19 by closing non-essential businesses, experts have debated whether a force majeure provision of a lease would excuse a tenant’s obligation to pay rent.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Real Estate, Paul Hastings LLP, Landlord, Force majeure, Coronavirus
    Authors:
    David Stanek , Bradley V. Ritter , Gregory E. Spitzer , Adam M Reich , Brendan Gage
    Location:
    USA
    Firm:
    Paul Hastings LLP
    Force Majeure and Impossibility in the Era of COVID-19, New Court Decisions and an Emerging Bankruptcy Trend
    2020-06-17

    Force majeure clauses and the doctrines of impossibility and/or impracticability remain among the most-discussed legal topics of the COVID-19 pandemic. Courts across the country, finally open, are grappling with those issues and giving some insight as to how these topics may play out in future cases.

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Real Estate, Seyfarth Shaw LLP, Force majeure, Coronavirus
    Authors:
    Eddy Salcedo , Nascine C. Howell , Owen Wolfe
    Location:
    USA
    Firm:
    Seyfarth Shaw LLP
    Bankruptcy Courts Continue to Accept Equitable Arguments for Deferring Rent Payments During the COVID-19 Pandemic
    2020-06-11

    Previously we reported on debtors’ appeals to bankruptcy courts’ general equitable powers for assistance in weathering the COVID-19-induced economic storm. (Our original article may be viewed here.) This trend remains and bankruptcy courts are demonstrating a continued willingness to entertain and offer such relief.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Real Estate, Akerman LLP, Force majeure, Coronavirus
    Authors:
    Thomas B. Fullerton , John E. Mitchell , Mary Katherine Fackler , Michael D. Napoli
    Location:
    USA
    Firm:
    Akerman LLP
    Asia: What’s next for disputes emerging from the COVID-19 crisis and the recent developments in key areas
    2020-06-11

    As COVID-19 spread across the globe like wild fire, many of its effects—including an economic downturn and emerging disputes risks—are being felt across markets.

    Filed under:
    Asia-Pacific, Company & Commercial, Corporate Finance/M&A, Insolvency & Restructuring, Litigation, Freshfields Bruckhaus Deringer, Force majeure, Coronavirus
    Authors:
    Wings Turkington , Karen Kong , Joaquin Terceño
    Location:
    Asia-Pacific
    Firm:
    Freshfields Bruckhaus Deringer
    Singapore: COVID-19 - Dealing with Counterparties at the Risk of Insolvency
    2020-06-11

    The COVID-19 pandemic has led to a significant strain in the global markets. As "stay-at-home" orders are implemented globally, many economies have closed off, which has severely impacted numerous businesses. Inevitably, some companies have liquidated and many others are at risk of insolvency.

    Filed under:
    Singapore, Insolvency & Restructuring, Bird & Bird LLP, Force majeure, Coronavirus
    Authors:
    Shaun Lee , Sandra Seah , Chelsea Chan
    Location:
    Singapore
    Firm:
    Bird & Bird ATMD LLP
    Ipso Facto, safe harbour and other insolvency protections you should know about post-COVID
    2020-06-09

    Ipso Facto is the sort of phrase people throw around when they're trying to sound more lawyery, but it's also the name of a regime that operates and affects your contractual rights when one of your contracting parties becomes insolvent.

    Filed under:
    Australia, Insolvency & Restructuring, MARQUE Lawyers, Force majeure
    Authors:
    Kim Middleton , Molly Jackson
    Location:
    Australia
    Firm:
    MARQUE Lawyers

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