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Home » Constructive Business Strategies To Counter The Impact Of The Covid-19 Pandemic

Constructive Business Strategies To Counter The Impact Of The Covid-19 Pandemic

The spread of COVID-19 has plunged the country’s economy into a period of unprecedented uncertainty. This uncertainty has detrimentally affected nearly all aspects of owning and operating businesses here in Northern California. Businesses across industries are asking whether they or their counterparties will be able to perform their contractual obligations considering the COVID-19 outbreak and its implications. State and local restrictions, supply chain and distribution disruptions, and general economic instability are already impacting parties’ ability to perform their contractual obligations. These concerns extend to all aspects of business including landlord/tenant relations, supplier or distributor arrangements, and insurance coverage issues.

Renegotiating Commercial Lease Terms To Address Government Shutdowns And Operating Restrictions

One of your business’s most significant operating costs is its commercial lease obligation. While federal, state and local governments have enacted numerous mandates and directives to protect residential tenants to date, only now are these institutions making modest efforts to protect the livelihood of commercial tenants. Indeed, many parties to commercial leases are forced to face the unfair conundrum of complying with their monthly lease obligations while simultaneously coping with the reality of drastically reduced revenues. Worse yet, many businesses have been shut down, will remain closed indefinitely, and will face substantial restrictions on the way they conduct business going forward when and if they reopen. This reality will undoubtedly impact their profitability going forward for at least the foreseeable future. Faced with the uncomfortable dilemma of maintaining a good working relationship with a tenant that is struggling financially through no fault of its own, landlords are increasingly willing to capitulate: That’s where we come in: We can assist your business in mitigating at least some of this risk by renegotiating the your lease terms to reflect the current state of the market.

“I wanted to say a very big thank you for all David and Kate’s support and expertise in assisting me with renegotiating my bar’s lease. I appreciate their professionalism and courtesy in what has been a very stressful period of my life. I was confident in their knowledge and advice on the decisions that were necessary to protect the future of my business during these uncertain times.”

— J. Seabrook, Owner of Lone Palm, San Francisco

Advocating Your Business Interests In Contractual Disputes Arising Out Of The COVID-19 Pandemic

Since the outbreak of the COVID-19 pandemic, businesses have struggled with their performance obligations associated with all types of commercial contracts ranging from supplier and distribution agreements to partnership and joint endeavor arrangements. Significantly, businesses are increasingly looking to contract terms (such as force majeure, casualty or condemnation of property, or abatement for loss of use provisions) and legal concepts (such as impossibility, frustration of purpose, or constructive eviction) to excuse nonperformance considering the impact of the COVID-19 pandemic and the government’s response to it. We are here to (a) assist your business with managing your contractual obligations considering an uncertain business environment, (b) mitigate the impact of COVID-19’s impact on your business relations, and (c) safeguard your business’s contractual position(s). For a frank assessment of your contract dispute and your legal options moving forward, contact us at 650-399-0752, via email or through our online intake form.

Pursuing Business Interruption And Other Insurance Claims

In addition to imposing a devastating human toll, COVID-19 is causing massive disruptions and losses to businesses throughout California and beyond. In response to this pandemic, California and local governments have shutdown schools, prohibited public gatherings, limited restaurants to takeout service, and effectively shut down bars altogether. While a legitimate business interruption or contingent loss insurance claim could immensely assist your business in mitigating your business’s loss of income arising from these closures and other interruptions, insurance companies are increasingly rejecting these claims without even bothering to examine them first. We are here to counsel you regarding whether it would be legally worthwhile to pursue such claims.