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March 10, 2021

Law360

AS COVID-19 began to spread across the U.S., real estate lawyers looked to help clients figure out whether force majeure clauses could excuse them from certain obligations. A year later, much has been learned about their efficacy.

A recent Law360 article notes that the past year has taught parties that force majeure clauses tend to be more useful in certain contexts like construction and less useful in disputes over payment of rent for commercial leases.

Given what's been learned over the past year, developers have sought to enshrine even stronger force majeure protections in their agreements, and many have been successful.

Elsa Ben Shimon, a partner in Stroock’s national Real Estate Group, stated that “On joint ventures for development deals, it's definitely … been the same concept of expanding the definition. Capital partners are not necessarily receptive to that.”

Read the article in Law360.

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