Force Majeure Clause May Be Unreliable If Circumstances Are Within Reasonable Control

Force majeure clauses have risen from ignored boilerplate clauses to top of the agenda due to coronavirus (COVID-19). The High Court has ruled against a party looking to rely on a force majeure clause...

... despite the express mentioning of the actual type of event (riot) within the clause.

The Contract

In the case of 2 Entertain Video Ltd v Sony DADC, the parties entered into a contract for Sony to provide warehousing and logistics services for 2EV's home entertainment business. Sony was storing a large amount of stock. During the 2011 London riots, rioters launched petrol bombs and the warehouse including all the contents burned down. Sony's insurers paid out £40m for the stock that was lost. 2EV also claimed for its loss of profits.