Friday, January 20, 2017

Force majeure clauses

Practice point:  Force majeure clauses are interpreted in accord with their purpose, which is to limit damages in a case where the reasonable expectation of the parties and the performance of the contract have been frustrated by circumstances beyond the parties' control.  When the parties themselves have defined the contours of force majeure in their agreement, those contours dictate the application, effect, and scope of force majeure.

Case:  Constellation Energy Servs. of N.Y., Inc. v. New Water St. Corp., NY Slip Op 00260 (1st Dep't January 17, 2017)

Here is the decision.

Monday's issue:  CPLR 3211 motions to dismiss.