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COVID-19 Related Governmental Shut Down Order Triggers Force Majeure Provision In Restaurant Leases

By Marisa L. Byram
September 01, 2020

As we all expected, cases are being brought and decided on the issue of whether the COVID-19 pandemic and related governmental shut down orders trigger force majeure clauses in commercial leases and operate to excuse the performance of commercial tenants. While commercial leases and the force majeure clauses contained in such leases vary widely, the recent decision from the United States Bankruptcy Court for the Northern District of Illinois in In re Hitz Restaurant Group, 616 B.R. 374, 2020 WL 2924523 (Bankr. N.D. Ill. 2020) may provide guidance to parties and help them to resolve similar disputes without resorting to the courts.

In In re Hitz Restaurant Group, a tenant leased commercial property located in Illinois for restaurant use. The force majeure clause in its lease stated:

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