Category Archives: Force Majeure

This was originally published on the SGR Blog.

Almost every commercial enterprise carries, or is covered by, insurance policies intended and expected to cover catastrophic losses. The pandemic certainly has been catastrophic. But, as a recent case illustrates, coverage may depend upon whether or not the virus is found to have caused direct physical loss or damage. 

The plaintiff/hoteliers own and/or operate hotels in Onondaga County, two of which were affiliated with Marriott International, Inc. Zurich American Insurance Company, issued insurance to Marriott covering the hotels.

This was originally posted on the SGR Blog.

The law reports are replete with contract disputes arising out of the pandemic. But, as a recent case illustrates, a force majeure clause in an agreement may be conclusive.

Adam and Randi Sanders sued to recover money deposited for an event at defendant Edison Ballroom, LLC’s facility, which did not occur due to the COVID-19 pandemic.

The parties entered into an agreement dated May 25, 2018, for the Sanders’ use of the Edison Ballroom to host an event that was to take place on April 25, 2020, to coincide with their daughter’s age-related birthday.