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Date: 3/16/2020
Subject: Update2: COVID-19 and Club Events
From: Governor Lori Reed



    GWR Special News Blast
   COVID-19 Virus and Club Events

Dear Members of the Golden West Region,

Last Thursday March 12, SIA had communicated: “In view of the seriousness and risks associated with coronavirus (COVID-19) infectionif you are in North America, Japan and Korea, you must postpone or cancel all club events through at least April 15. You should reassess this timing based on your local health and governmental authorities' recommendations.”

 

As you may now know, on Sunday night, March 15, our country’s CDC recommended organizers postpone or cancel events of 50 or more people for the next eight weeks (estimated through May 11). This action supersedes my March 13 communication.  April 15 is now May 11 until further notice.  And the new CDC recommendations issued today have changed the number of people to 10.

 

The CDC said these gatherings include conferences, festivals, parades, concerts, sporting events, weddings and other types of assemblies As you take the steps to postpone or cancel your CLUB FUND RAISERS and EVENTS, I want you to have the following basic information from our General Legal Counsel.  The specific laws may vary from state to state, but here are some helpful concepts:

  • If you have entered into a written agreement with a venue for your CLUB FUND RAISERS and EVENTS, the legal concept of Force Majeure has come into effect.
  • It is not always necessary for the term Force Majeure to be in the agreement.  If there is, the wording will control its use and application to your situation.
  • Force Majeure is where a party’s performance with regard to an agreement has been interrupted, delayed or made impossible by a reason beyond the control of both parties.
  • This means the performance of the CLUB should be legally excused. CLUB performance is defined as payment and/or holding the event.
  • This legal concept is already being exercised in the state of WA, which is not binding precedent in other states but may be used as guidance in other jurisdictions.
  • The fact that WHO has declared COVID-19 a pandemic and the US government decreed a National Emergency will bolster the Force Majeure legal concept.

Now for the practicalities of using Force Majeure…..

  • The venue you are doing business with may say they may not or will not refund your CLUB deposit. If so, then you want to cite the legal term Force Majuere and that it is already being exercised.
  • You are willing to work out an arrangement such as rebooking the business at another time with the venue
  • Ask for your deposit back, but just as airlines are doing, they may give a credit only.
  • Using a lawyer should be your last recourse as it will cost more and take longer.


Please reach out to myself, or any GWR Board Member if you have questions or concerns.

Governor Lori

March 16, 2020
QUESTIONS?  COMMENTS?
Contact Governor Lori Reed -
LoriR.GWR@Gmail.com