COVID-19 Force Majeure

Client Alert. Read our client alert authored by Alexander Ferrini entitled "Force Majeure? Contractual Performance During the Coronavirus Pandemic" for information regarding contractual performance issues during the coronavirus pandemic.

Contractual Performance During the Coronavirus Pandemic - Updated March 18. On March 18, Governor Cuomo signed an Executive order designating “construction” as an essential business activity, such that the workforce restrictions applicable to other business do not apply to construction sites. A copy of the Executive Order can be found here.

Considering this Order, it appears unlikely that manpower shortages due to the coronavirus would be covered under applicable force majeure clauses, or would be the basis of a claim of impossibility, in construction contracts in New York.

Contractual Performance During the Coronavirus Pandemic - Updated March 21. On March 21, Governor Cuomo announced that he will no longer designate “construction” as “essential,” such that only projects that are directly related to the COVID-19 response will be allowed to proceed.  The Governor’s Executive Orders can be found here. Guidance on what types of projects will still be considered “essential” is here.