Illinois Bankruptcy Court Holds Pandemics Can Trigger Force Majeure
By: Josh Bethea
COVID-19 has forced hundreds of businesses into bankruptcy while taking thousands of American lives. But can it excuse failure to perform a contract?
A bankruptcy court in Illinois held yes. Although much about this issue remains unclear, the Court’s decision reinforced the rights of contracted parties whose agreements contain force majeure provisions. This post will briefly explain the law of force majeure and then explore the impact of the Court’s ruling.