Skip to main content

Insight article

August 10, 2021

Understanding if the force is with you

'May the force be with you' is usually the concern of Jedi knights heading to battle in Star Wars, rather than something that company directors look for. But for those companies looking to claim that the coronavirus pandemic has given rise to circumstances beyond their control in delivering on contracts, another major ‘force' is concentrating minds.

In one of the few cases to consider the impact of the pandemic on company contracts to date, the High Court has ruled that a force majeure event took place when a Drain Doctor franchisee needed to self-isolate due to the risk of Covid-19 on his vulnerable child.

A force majeure clause in a contract can excuse one or both parties from their obligations without being liable for any failure to perform if acts, events or circumstances occur which are beyond their control, such as a natural disaster or a state of war.

In the case of Dwyer (UK) Franchising Ltd v Fredbar Ltd & Bartlett, the franchise agreement contained a clause for suspension during any period that either party was prevented or hindered from complying with their obligations by any cause designated as force majeure by the franchisor.

When Fredbar (franchisee) asked to invoke the clause as work levels were reduced and he needed to self-isolate, Dwyer (UK) (franchisor) argued that plumbing services could still be provided during the lockdown and a drop in demand was insufficient grounds for force majeure. When the franchisee terminated the agreement, arguing Dwyer (UK) had failed to meet its obligations, the company retaliated by initiating legal action, claiming damages.

In assessing the case, the High Court drew on what is known as the Braganza duty from the 2015 case of Braganaza v BP Shipping, which saw the Supreme Court rule that a unilateral power to call a force majeure event must be exercised ‘honestly, in good faith and genuinely’.

In this case, the judge ruled that Dwyer (UK) breached the Braganza duty in refusing to agree to force majeure, as they had failed to consider all the relevant factors. These extended beyond the general situation regarding plumbing services during the pandemic and included the importance of family welfare and the franchisee’s need to isolate to protect his son, who was in a vulnerable category for Covid purposes.

Corporate lawyer Victoria Holland explains:

“The ruling reflects the specific facts of this case and the wording of the force majeure clause. But while the wording of Drain Doctor’s clause was not typical, it is an interesting outcome for anyone currently pursuing action on these grounds in relation to the pandemic. However, each case will hang on individual circumstances and the wording of the particular contract concerned.

The past year has taken us all into unchartered territory, demonstrating how the unexpected can, and does, happen. It is therefore even more important than ever before to have well-drafted contracts, as having clear terms in place can make all the difference. And because the concept of force majeure is derived from civil law, and not fully recognised under English common law, it should always be fully and clearly defined in a contract.”

Contact Victoria Holland today to see if the force is with you.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Stay in touch

Subscribe to our newsletter

Stay in touch

By completing your details and submitting this form you confirm you are happy for us to send you marketing communications and that you agree to our Website Privacy Policy and Legal Notice and to us using Mailchimp to process your data.


Sending

News/Insight

  • When charity shouldn’t begin at home
    The downfall of the Captain Tom Foundation is a cautionary tale of what happens when a charity gets too close to home — highlighting the complexities of charity governance and accountability in the sector. The foundation, created to continue the fu


    Read more
  • Six tips to make things simple for your executors
    An executor is legally responsible for carrying out the instructions set out in a will.


    Read more
  • Staying ahead in a changing legal landscape
    Regularly reviewing employment contracts and policies is essential for legal compliance and risk mitigation. Stay updated on legislative changes, workplace trends, and best practices to protect your business and employees.


    Read more
  • RIAA Barker Gillette (UK) acts for Alexander Nix in Commercial Litigation
    Press Release


    Read more
  • New sexual harassment rules may signal changes to office parties or a decline altogether
    Tomorrow is expected to be one of the busiest nights for office Christmas parties this year. While these celebrations are a staple of the festive season, offering a chance for colleagues to unwind and bond, they also bring unique challenges for emplo


    Read more

What they say...

  • Mikaela, February 2025
    “Martin was brilliant – so professional and personable. He clearly has a lot of expertise, and we always felt were in safe hands. He’s always available to speak on the phone, and is incredibly patient and reassuring. He worked effic

  • Bibiana Farenzena, February 2025
    “Victoria Holland and Evangelos Kyveris I want to thank you for your involvement and efforts on this case. You have been immensely helpful, and I appreciate all your knowledge and advice regarding this matter.”

  • Dabid Shaw, February 2025
    “Excellent , personalised one to one client care. Options laid out in a comprehensible manner. Fees appropriate for service provided.” Herman Cheung

  • Michael, February 2025
    “Martin was great to work with, despite a very difficult first buyer, second time round was the charm! Thanks to Sharon too.”

  • Annette, February 2025
    “We contacted RIAA Barker Gillette to get our wills arranged. Herman was professional & helpful with all aspects of the process. He explained everything clearly, notified in writing everything we discussed & answered the many questions

Read more
Send this to a friend