The COVID-19 pandemic has caused us all to make the difficult decision to cancel business meetings, family reunions, conferences, and other events. Contracts with event venues such as hotel conference centers, wedding venues and other event venues must be dealt with as result of these trying times. To make matters worse transportation, photographers, decoration, and audio-visual service contracts are corollary contracts that need to be dealt with as well. But that is not it! All the participants and guest to these a planned events will also have to told the bad news about cancellation. Its terribly frustrating circumstance made yet worse by the uncertainty of COVID-19. The New Jersey Government’s Orders have made many planned events just plain impossible. Executive Order No. 135; Executive Order No. 152; Executive Order No. 157; Executive Order No. 161
Many event venue contracts have liquidated damages clauses to cover the venue should cancellation occur. Are these damages fair in light of COVID-19? As a party to a venue contract be sure to act proactively with regard to cancellation dates. Don’t wait to speak to an attorney until after the events date has passed. Engage an attorney to send out legal notice as to why the contract cannot be performed ahead of the events scheduled date. There also may be insurance coverage for cancellation-related losses. However, such an insurance policy may also require notice due to a COVID-19 cancellation. The coronavirus pandemic has created and enormous challenge to many contracted parties. I have discussed force Force Majeure and its application to contracts during the pandemic. Should your contract not contain such a clause here is Sample Letter for event cancellation due to COVID-19.
If you have questions about your contracts and how to deal with them in light of the pandemic, the attorneys at Riviere Advocacy Group can advise you. Contact us for a consultation with an experienced attorney