CHICAGO: 312 332 7555 SCHAUMBURG: 847 705 7555
Blog Post
Coronavirus – Legal Implications
Theodore M. McGinn • March 6, 2020
Coronavirus has gripped this nation in a furious way. While most parties are considering potential health ramifications and actions to protect their wellbeing (rightfully so), attorneys are looking at potential implications for their client. Because the world is a global place, events taking on the other side of the globe can have direct impact. The Coronavirus pandemic may interfere with your ability to meet your contractual obligations. Furthermore, if currently negotiating a contract, the potential risk that an escalation of the outbreak could further interfere with your business should be a factor considered in the terms under the contract.
Existing Contracts.
Any business that relies on suppliers with international operations should look at their existing customers agreements and determine whether there are clauses that could provide protection in the event of an interruption in supply. Some contracts may have provisions that excuse delayed performance. In addition, many contracts could include “force majeure” clauses. A force majeure event would be any action that generally prevents a party from being able to perform under the contract that is beyond the reasonable control or not reasonably foreseeable at the time of the contract. Even if the contract does have a force majeure clause, a party still needs to pay close attention to whether notification requirements have to be met in order to rely upon such provision. Depending on the contract, the failure to send a notice could constitute a waiver under such provision.
Future Contracts.
Many contracts contain provisions with strict deadlines. Because of the uncertainty related with your supply chain, you should negotiate language that sets a more flexible schedule.
Alternative Means of Performance.
Relying on force majeure may be challenging. As a result, a party should consider whether there is an alternative way to comply with the terms of the agreement. Furthermore, are there other means to mitigate the damages that would be sustained? In the event of litigation due to a breach of contract, it is critical that you take all reasonable action to minimize damages.
Insurance Coverage.
You should inquire as to whether you have existing liability or business interruption insurance coverage. From time-to-time, some businesses will acquire such coverage, which could cover losses in the event there is an interruption in your business activities. You should review any insurance policies to determine the grounds with which you have obtained the benefit of such insurance coverage. Moreover, similar with force majeure, you should consider the notice requirements and ensure that you do not waive any rights under the policy due to a late notice.
Certainly, everyone should consider the health ramifications of a potential pandemic of Coronavirus. Moreover, business owners should also look at their business operations and begin to plan for potential interruptions of their business and/or determine their contractual rights. Finally, any business owner should consult with an attorney to further evaluate their potential risks and rights under existing contracts.
If you have any questions about this article or have any questions relating to the legal implications due to the Coronavirus, please contact attorney Theodore M. McGinn at (847) 705-7555 or tmcginn@lavellelaw.com.
More News & Resources
Lavelle Law News and Events
On March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) issued its interim final rule stating that those entities previously classified as "domestic reporting companies" are now exempt from all BOI reporting requirements. On the other hand, all foreign entities registered to do business in the USA must file their own initial BOI reports within 30 days of the initial final rule's publication, if they have not done so already.
Spring is here, and with baseball season kicking off, we’re stepping up to the plate with our annual Lavelle Law Business After Hours event. We’re excited to partner with our friends in the Schaumburg business community for an evening of networking, good vibes, and a few surprises—all hosted in the friendly confines of our Schaumburg office. Bonus points: Feel free to rock your favorite baseball team’s gear and show off your fandom while you’re at it!
Delaware corporations seeking to redomesticate to another state should be advised that on February 4, 2025, the Delaware Supreme Court issued its highly anticipated decision in Palkon v. Maffei, C.A. No. 2023-0449-JTL, addressing a challenge to TripAdvisor's redomestication from a Delaware corporation to a Nevada corporation. The case raised important questions regarding the standard of review applicable to such reincorporations, particularly when fiduciaries may derive a benefit from shifting to a legal regime perceived as more friendly.
Recent legislative efforts in Illinois are reshaping the state’s approach to residential zoning, with significant implications for the housing market. A new bill, House Bill 1814, introduced last week, aims to eliminate single-family zoning in municipalities across Illinois. If passed, this bill will allow for the development of multi-unit buildings in areas currently zoned exclusively for single-family homes. This initiative, alongside a similar bill introduced last year, has the potential to address the state’s growing housing shortage and make housing more affordable for middle-class families.
On February 27, 2025, FinCEN issued an immediate press release stating it would not impose fines, penalties, or take any other enforcement actions against companies that fail to file or update Beneficial Ownership Information ("BOI") reports pursuant to the Corporate Transparency Act ("CTA") by the current deadlines. FinCEN also announced that it would be revising BOI reporting deadlines through an interim final rule set to be issued no later than March 21, 2025.
The IRS recently published its yearly list of most prevalent tax scams known as its Dirty Dozen. The list is obviously not exhaustive but an attempt to warn taxpayers of trends seen by the IRS. The IRS list of tax scams for 2025 came with a warning for taxpayers, businesses, and tax professionals to watch out for common schemes that threaten their tax and financial information.
Lavelle Law represented a small Illinois business owner who had accumulated a large sales tax balance due to their accountant’s negligence. Unbeknownst to the client Illinois Department of Revenue (“IDOR”) was at the levy issuance phase in its collection. And the IDOR levied the taxpayer’s account right after the taxpayer had deposited funds from a HELOC that was obtained to provide capital to the company for the next 6 plus months.
The Illinois legislature has recently taken a significant step in closing a longstanding loophole in child support. This amendment represents a pivotal change in how courts assess and calculate child support obligations, providing greater protections against those who attempt to evade their financial responsibilities.
This article will serve as another update to the ongoing Corporate Transparency Act developments. As of February 17, 2025, a federal judge in the Eastern District of Texas lifted the injunction it had ordered on January 7, 2025, in Smith v. U.S. Department of the Treasury, 6:24-cv-00336 (E.D. Tex.), allowing the federal government to once again enforce the Corporate Transparency Act and its Beneficial Ownership Information Report requirements.
This article is the second in our Litigation 101 series. It focuses on the flip side: how to sue someone else.
Suing someone is a serious decision that requires careful thought and preparation. Before pursuing legal action, it’s crucial to reflect on the issue and understand the steps involved in bringing a lawsuit. This article outlines the basics to help you approach the process with confidence and make informed decisions.
STAY UP TO DATE
Subscribe to our newsletter
OUR LOCATIONS
Phone: 312 332 7555
Fax: 312 332 4611
Fax: 847 705 9960
Created by Olive + Ash.
Managed by Olive Street Design. 