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Texas Lawyer

Mar 12, 2020

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Joshua Sandler Discusses Breach-of-Contract Lawsuits Linked to Coronavirus

LPCH Partner, Joshua Sandler, expects a rise in litigation due to disrupted global supply chains caused by coronavirus and quarantines. Several China-based vendors are unable to honor contracts with U.S. companies because of the “force majeure” event. The potential breadth of future litigation is massive.

“As of March 3, China issued 4,811 force majeure certificates,” said Sandler. He mentioned that the value totals $53.79 billion. “The impact, then, on nearly every U.S. supply chain is going to be severe. It could mean every U.S. supply chain could come to a halt, if these Chinese partners or companies stop, or try to excuse their nonperformance of a contract.”

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