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COVID-19 Is Natural Disaster Triggering Force Majeure Clause

By: Dustin Dellinger

When the COVID-19 pandemic postponed a marquee auction event, the auction house relied upon a force majeure clause to terminate an agreement to sell a high-priced painting and refused to pay the seller the guaranteed minimum price.

A federal district court found the language of the agreement’s termination provision controlled, and the COVID-19 pandemic was a natural disaster within the meaning of the contract. Accordingly, ABA Litigation Section leaders suggest that litigators take care in interpreting force majeure clauses to determine whether particular events trigger these provisions.

To read more follow the link below:

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California federal court provides guidance on how to draft a stipulated judgment that is non-dischargeable in bankruptcy

By: Dustin Dellinger

The U.S. District Court for the Southern District of California held in In re Wlodarczyk (Cheikes v. Wlodarczyk) that a debtor’s failure to disclose his financial inability to pay a guarantee did not rise to the level of a fraudulent omission leading to non-dischargeability of the debt under Section 523(a)(2)(A) of the Bankruptcy Code, where the creditor failed to ask him to make representations regarding his financial condition and therefore the debtor had no affirmative duty to disclose that poor condition.  Thus, although the parties had stipulated to the judgment and stipulated further that the judgment was non-dischargeable, the court held that the judgment in that case nevertheless could be subject to discharge.  See https://www.leagle.com/decision/infdco20190716a39

Missouri federal court addresses entitlement of senior lender to collect default interest after the debtor’s bankruptcy

The U.S. Bankruptcy Court for the Western District of Missouri held in In re Family Pharmacy Inc. that federal law allows the application of equitable principles to deny a claim for default interest post-petition in an appropriate case.  The court also looked to state law to determine whether default interest is deemed a penalty.  See, https://www.leagle.com/decision/inbco20190708334

Missouri federal court addresses entitlement of senior lender to collect default interest after the debtor’s bankruptcy

By: Dustin Dellinger

The U.S. Bankruptcy Court for the Western District of Missouri held in In re Family Pharmacy Inc. that federal law allows the application of equitable principles to deny a claim for default interest post-petition in an appropriate case.  The court also looked to state law to determine whether default interest is deemed a penalty.

See, https://www.leagle.com/decision/inbco20190708334

Partner Marc Zucker’s pro bono work featured in annual report

By: Dustin Dellinger

Weir & Partners LLP’s ongoing, pro bono representation of disabled, low income Philadelphians without birth certificates was highlighted in the 2018 annual report of the Philadelphia Volunteers for the Indigent Program, the pro bono arm of the Philadelphia Bar Association.  The feature focused in particular on partner Marc Zucker’s representation of a blind, homeless woman who was unable to qualify for low income housing because she was never issued a birth certificate.  Read more here:

https://www.linkedin.com/feed/update/urn:li:activity:6562415141802041344/

Zucker speaks at seminar for Philadelphia Commerce Court judges pro tempore

By: Dustin Dellinger

Partner Marc Zucker recently co-planned and participated in a panel presentation with three judges of the Commerce Program of the Philadelphia Court of Common Pleas, designed to train sophisticated business litigators to serve as judges pro tempore at court-sponsored mediations and settlement conferences.  More than 40 experienced business litigators attorneys attended the two-hour Philadelphia Bar Association seminar on March 19, 2018, in addition to the three judges.  Among other topics, Zucker and his fellow panelists addressed new procedural developments, new roles for Commerce JPTs and best practices in preparing for and conducting a settlement conference or mediation. A business litigation partner of the firm, Zucker frequently serves as a private mediator or arbitrator, in addition to his volunteer service to the court.