Jan 2001 stories -
[Cached Version]
Published on: 1/1/2002
Last Visited: 7/19/2003
"I would go so far as to say they're pretty well worthless to the meeting planner," says Gerald D. Bloch, an attorney in Aliso Viejo, CA, specializing in hospitality and resort business.
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"All the standard force majeure provision does is allow one party to be able to get out of the contract if an event takes place that makes it impossible for that party to perform," attorney Bloch explains."Now if you carefully think about it, that's a relatively high standard.You don't won't to have to rely on a careworn provision that exists in some old law book somewhere." Bloch adds, "So many things can happen that would make the meeting planner wish to cancel, beyond what the hotel would want.
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Bloch says companies under those circumstances should have to pay cancellation fees."We have a client in the high tech sector who laid some contracts on my desk and said 'We have a deposit on these trade shows and we really don't want to go now.' So some of it is economic," he believes.Pearson of Aon says he hasn't seen economic cancellations, but would take a dim view of them if he did."Some people may want to cancel a meeting for next year and try to use September 11 as a crutch," he acknowledged.
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asks Bloch.Suppose, for example, that a particular community suffers a highly publicized anthrax scare, and suddenly attendees refuse to go to the meeting.Bloch says the contract should always contain a provision allowing the company to be fully excused if conditions in the community substantially change after the contract has been signed.
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Bloch concedes, "Some situations you can still argue either way.But that's good for the planner, because with the hotel's force majeure provision, you can't even argue."This explains why consultant Vitagliano offers the following stern advice for meeting planners: "This is a time to invest a few hundred dollars and an attorney's time to have him review your standard contracts and make recommendations accordingly," he said.