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Force Majeure Clause Nullifies Consignment AgreementForce Majeure Clause Nullifies Consignment Agreement

U.S. federal court rules COVID-19 pandemic is a “natural disaster”

Azmina Jasani, Partner, Art and Cultural Property Law Group

March 24, 2021

12 Min Read
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The COVID-19 pandemic has affected the art world in many ways, including making it difficult, if not impossible, for art businesses to meet their contractual obligations. To protect their bargaining position, many auction houses include a force majeure provision in their agreements which, depending on its phrasing, may allow one or both parties to terminate the agreement upon the occurrence of a force majeure event as defined within the agreement. Does COVID-19 constitute a “natural disaster” to invoke the force majeure clause? One federal district court recently said that it does, at least in the context of the agreement between the parties. 

Finding in favor of Phillips Auctioneers LLC (Phillips), Hon. Denise Cote of the Southern Distri...

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About the Author

Azmina Jasani

Partner, Art and Cultural Property Law Group, Constantine Cannon

Azmina Jasani is a partner in Constantine Cannon's Art and Cultural Property Law Group, and concentrates her practice on all aspects of art law.  Azmina is dual qualified to practice law in New York and England & Wales. She has significant experience working with international collectors, large and small galleries, auction houses, professional advisers, dealers and financial institutions on contentious and non-contentious matters.

Azmina advises clients on the sale and purchase of important works of art bought and sold privately or at auction, on consigning works to auction houses and galleries, on using art as collateral for loans, on loaning artworks to museums or special exhibitions, on copyright and other intellectual property rights and on operating an e-commerce business, particularly online-only auctions. In addition to her transactional experience, Azmina has substantial litigation experience in the area of copyright infringement, authenticity, title disputes, consignment disputes, general contract and complex commercial disputes, including fraud, and World War II restitution.

Prior to joining Constantine Cannon, Azmina spent four years as an associate in the New York office of Withers Bergman LLP, where her primary focus was art litigation. She also spent two years as an associate in the New York Office of Schulte Roth & Zabel LLP, where she advocated on behalf of corporate and hedge fund clients on matters relating to securities fraud and contractual disputes.

Azmina received her J.D. from the University of California, Berkeley School of Law (Boalt Hall), and her B.A., summa cum laude, from Queens College, City University of New York.

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