Firms report surge in calls and client queries as contract revisions are made to protect deals
The FT reports
Corporate lawyers are experiencing a surge in work due to the coronavirus as companies seek ways to back out of contracts or prevent deals from falling apart. Lawyers said they were experiencing increases in calls and client queries of 25 per cent or more as a result of legal issues stemming from the outbreak.
“We’re in uncharted territory here,” said Aoife Keane, a disputes partner at Seddons.
“As far as I can remember nothing has had the same ramification for business to business contracts and the supply chain.” Companies have been calling on force majeure clauses in contracts that allow them to renege on or delay orders, with a record number enforced by Chinese companies in the last few weeks.
Large international law firms including Skadden, Paul Weiss and Linklaters said their lawyers were fielding calls from clients with disrupted supply chains or mergers and acquisitions that were under threat.
Companies have also been enquiring about adding standalone “coronavirus” clauses to their employment policies, which take into account quarantine leave, sick pay and the obligations on employers to protect their workers.
These would set out different rules to normal company policy around sickness and absence, and deal with issues such as worker pay and leave in situations where workers chose to self isolate. The increase in demand is complicated by the fact that some law firms have been forced to temporarily shut their own offices and work from home to counter the spread of the virus.
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