“Only one form of contagion travels faster than a virus. And that’s fear.”
Dan Brown
COVID-19: May the Force (Majeure) Be With You
The strain of of the corona virus pandemic is not only a threat to our health and safety, but it is also creating economic hardship for people, businesses and entire industries.
As the ability to perform obligations under existing contracts are being strained, whether for supplies, paying rent or making payroll, parties to agreements are doing more than exercising self-help or looking to the government for assistance. They are also calling their lawyers to find out if anything in their contracts will allow them to legally extricate themselves from the obligations that may have seemed routine only a few months ago.
One of the primary areas of contractual inquiry has focused on the force majeure or excusable delay clause that is ‘boilerplate’ in many agreements. Force majeure literally translated from the French means ‘superior force’ and refers to situations in which some external intervening event has impaired a party’s ability to perform its obligations under the contract and allows that party’s performance to be excused.
For some insight on how effective, applicable and even understandable these so-called ‘standard clauses’ are, you can take a look at my Insight Note: Managing Contract Risks & Remedies in a Time of Coronavirus.
You might also check out a similar Insight Note from my partner and colleague, Juan Zuniga entitled: Memo on Force Majeure and COVID-19 which goes into great detail as to how the law in California might be interpreted in light of the current health crisis.
In fact, you can find all of the recent Insights from Rimon Law professionals on our Insights & Analysis page and once again a reminder that Rimon lawyers and legal professionals are always available to help.
Paycheck Protection Program & Disaster Relief Loan Information Released (Updated)
Following up on our post yesterday (US Chamber of Commerce Issues Coronavirus Small Business Guide), you can find the Paycheck Protection Program (PPP) Information Sheet for Lenders and the Paycheck Protection Program (PPP) Application Form (and accompanying instructions) just released by the US Small Business Administration.
The SBA has established a streamlined process for disaster loan assistance that you can access online at COVID-19 ECONOMIC INJURY DISASTER LOAN APPLICATION.
As noted previously, the lawyers at Rimon Law are following these developments closely and while you may already be deluged with summaries, information bulletins and alerts, we are and remain available to help any time across a broad spectrum of businesses, industries, relationships, activities and transactions that have been affected by the COVID-119 pandemic.
US Chamber of Commerce Issues Coronavirus Small Business Guide
Part of the recently enacted Coronavirus Aid, Relief and Economic Security (CARES) Act is designed to help small businesses keep workers employed during this pandemic crisis and the consequential stress facing the economy. In fact, the CARES Act has allocated $350 billion to the Paycheck Protection Program, an initiative that will provide loans to small businesses that are 100% guaranteed by the Federal government.
The United States Chamber of Commerce has issued a guide to help small businesses understand who is eligible, in what amounts these loans will be available and what criteria will determine whether the loans will be forgiven. You can read the summary right here: Corona Virus Emergency Loans Small Business Guide & Checklist.
As always, I and all of the legal professionals at Rimon continue to remain available to assist during these challenging times.
IRS Issues Coronavirus Tax Relief Guidance
The U.S. Internal Revenue Service (IRS) has set up a special Coronavirus Tax Relief section on its website, in order to help taxpayers, businesses and others affected by COVID-19 obtain information regarding their tax and filing obligations, all of which have been affected by the pandemic.
While there is no information as of now regarding details of any stimulus or relief package, there is valuable information describing some temporary adjustments and suspensions of certain compliance programs, details of the Treasury’s extension of the deadlines for filing and federal tax payments to July 15, 2020 and a number of other releases providing tax-related guidance as a result of the COVID-19 outbreak.
IRS will update the information as it becomes available, so check back frequently as developments unfold.
The legal professionals at Rimon are available to help and as always, if we can’t help you – especially in these challenging times – we will assist you in finding someone who can! Stay safe and following the recommendations of your national, state, provincial and local authorities to keep yourself, your family, colleagues and friends healthy and prevent the spread of this infection.
US Dept. of Labor Issues FFCRA Guidance
The U.S. Department of Labor’s Wage and Hour Division released its initial guidance providing information describing how to take advantage of the protections and relief offered by the Families First Coronavirus Response Act (FFCRA) which takes effect April 1, 2020. The guidance includes links to information for employees and employers, as well as links to questions and answers and other useful information about the FFCRA. The DOL has a separate Coronavirus Resources webpage, providing a large number of references and links to additional information.
The US DOL has also released an FFCRA Poster that every covered employer must post in a conspicuous place on its premises, although the guidance does allow an employer to satisfy this requirement by emailing or directly mailing the notice to employees or by posting the notice on an employee information internal or external website. Although there is no legal requirement at this time to post the notice in other languages, DOL is currently working on translating the notice.
The legal professionals at Rimon are available to help and as always, if we can’t help you – especially in these challenging times – we will assist you in finding someone who can! Stay safe and following the recommendations of your national, state, provincial and local authorities to keep yourself, your family, colleagues and friends healthy and prevent the spread of this infection.
25th Anniversary Edition: Best of the Best USA Expert Guide
I am honored at having been notified I will be listed in the 2019 Best of the Best USA Expert Guide, as one of the Top 30 Media Practitioners in the USA.
Over the course of a quarter of a century, Euromoney’s Legal Media Group has researched the world’s legal markets. Based on extensive review, with legal peers and in-house counsel, they identify the world’s leading lawyers, advisers and legal practitioners.
Over these past 25 years, the Expert Guides have become a valuable reference tool and trusted resource for international buyers of legal services.
This is their 25th Anniversary Edition and although I have been listed in previous editions of the Guide to the World’s Leading Technology, Media and Telecommunications Lawyers, each time I receive such a notice, it reminds me of the professional relationships I have enjoyed over the last 40 years and the great privilege I have been afforded of serving and working with clients and colleagues, not only in the USA, but around the world. Thank you!
Poet’s Corner
On May 31, 1819, one of the greatest American poets, Walt Whitman, was born. A native New Yorker, Whitman grew up in Brooklyn and became the editor of the Brooklyn Daily Eagle External. Over time he started experimenting with poetry without a regular rhythm or rhyme – now referred to as ‘free verse.’ His famous poem Leaves of Grass was first published anonymously in 1855, but he kept revising and enlarging the poem – the final, ninth edition was published in 1892, the year Walt Whitman died.
P.S. Walt Whitman shares a birth date (but not the same year) with Clint Eastwood.
Not Traditional . . Not Virtual . . Just Evolved
Terrific to read Jill Berliner’s guest column, “The Merits of Ditching the Office for an ‘Un-Traditional’ Law Firm,” in Variety.
Proud to call her my partner, colleague and friend.
The Antitrust Division Finds the Nails
– By Stephen Díaz Gavin
Just yesterday (Monday, November 20th), as Stephen Diaz-Gavin’s article “For Want of a Nail: The AT&T – Time Warner Merger” was posted on Legal Bytes, the Antitrust Division of the U.S. Department of Justice (“DOJ”) filed a lawsuit opposing the merger in the U.S. District Court for the District of Columbia, asking that the proposed merger and related transactions be permanently enjoined. The lawsuit is a significant departure from U.S. antitrust policy in recent years, which has generally permitted vertical mergers and, as we pointed out in our original post, highlights the problems in not having availed themselves of the FCC’s public interest review to address the concerns about the merger, publicly. AT&T immediately responded that it will defend the merger, but win or lose, one thing is a sure thing – approval of AT&T’s $85.4 billion entry into the content production business — is no longer a sure thing. You can read the full text of the DOJ Complaint and again, if you have any questions feel free to contact Stephen Díaz Gavin directly. Of course, you can always contact me, Joe Rosenbaum, a Partner at Rimon in New York or any of the lawyers at Rimon with whom you regularly work.