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As the world continues to adapt to the so-called new
normal following the unprecedented challenges brought about
by the COVID-19 pandemic, one key question that is being asked time
and time again: what does this mean for me and my business?
In terms of dispute resolution and litigation practice, it is
clear that the pandemic has not stopped individuals or companies
from filing actions with the courts. In Guernsey this is known as tabling the cause , pursuant to Section 10(1) of the
Royal Court Civil Rules, 2007 (RCCR).
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The COVID-19 pandemic has caused thousands of businesses across
the country to close their doors either temporarily or permanently.
These closures have resulted in a significant increase in disputes
between commercial landlords and their tenants. While many of those
disputes have been, or can be, resolved with a business-minded
solution – with the landlord and the tenant sharing the economic pain – a number of cases have ended up
in court.
Cassels is experienced in handling leasing and real estate
disputes. Below we have summarized the most significant reported
As indicated in a recent article
1, the payment of commercial
rents during successive lockdown periods is an issue that has given
rise to numerous disputes.
In that article, we pointed that arguments based on force
majeure, unforeseeability (a French law concept close to that of
hardship) or non-performance, often used by lessees as a
justification for not paying rent, had been dismissed in the
majority of court decisions handed down on this subject. In this
context, the preferred course of action seemed to be the
renegotiation of the lease agreement and its adaptation to the
circumstances, as per the principle of good faith that governs the
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Businesses and communities are dealing with many COVID-19
related issues that are causing severe business disruption.
The Irish government has been swift to introduce new measures to
mitigate the effects of COVID-19 on business. No doubt,
further measures will be introduced in due course. Revenue has
acknowledged that tax payment difficulties are an inevitable
impact of the COVID-19 pandemic and has advised
taxpayers to file tax returns and pay tax liabilities if at
all possible .
Business Supports
On 2 May 2020 the Irish government announced a suite of measures