These “act of God” clauses were generally boilerplate language to which no one really paid much attention.

Then the Covid-19 pandemic exploded across the globe, with government mandated shutdowns of businesses and construction projects, followed by supply chain disruptions and labor shortages, not to mention a possible recession and the specter of new Covid strains.

“Before, it wasn’t as top of mind to be as detailed and intentional,” said Stephanie Holmberg, who leads Schwabe Williamson & Wyatt’s Real Estate and Construction Industry group. “The majority of force majeure clauses would include some reference to a global pandemic, but now it’s one of the most important clauses we review in a contract because we’ve seen what can happen if you don’t have a properly drafted clause.”

Holmberg and her colleagues in the Portland firm said they are advising clients on how to adequately protect themselves in the face of recent events that dealt broad-based blows not only to public health but also the economy.

Read the full article in the Portland Business Journal

This article was republished with permission from the Portland Business Journal.

This article summarizes aspects of the law and does not constitute legal advice. For legal advice for your situation, you should contact an attorney.