How to use mediation to deal with force majeure disputes

Industry is going to face the difficult times over the next few months and many companies are going to try and invoke their force majeure (FM) clauses to try and get out of the contractual obligations they cannot perform. There is going to be significant debate about:

  • Whose terms and conditions were incorporated in the contract?
  • Is the FM clause wide enough to cover the situation?
  • Does the FM clause incorporate disease and epidemic?
  • Has Covid19 really impacted or is it just an excuse?
  • Does it terminate the contract or delay performance?
  • What obligations are there to mitigate loss?

Companies are going to be fighting hard through necessity and to protect possibly their own continued existence. Can I suggest that the early use of mediation will:

  • Limit the legal costs which they probably cannot afford
  • Provide a quick solution
  • Allow them to talk openly about their real issues
  • Produce lateral thinking to provide a solution for both
  • Maintain the contractual relationship for when matters calm down

Founded in 2006, our team of 7 experienced mediators have been involved in over 1,500 mediations, settling 90% of disputes, which is well above the national average.

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