Virginia Business Law: Contracts and COVID

I have been getting a lot of calls from both small business owners and consumers over the last few weeks about how to handle existing contracts and special events that have been planned for months. Event venues have been particularly hard hit from the coronavirus. As a result of Governor Northram’s executive orders, these event venues have been unable to honor their contracts.Refunds and rescheduling are the two biggest issues right now.

So what do you need to know about how the state of emergency has impacted contracts and event venues?

Virginia’s Executive Orders:

Executive Order 53 and Executive Order 55

There have been several executive orders over the last few weeks, but the most important orders are Executive Order 53 and Executive Order 55. Executive Order 53 was passed on March 23, 2020. This order forced non-essential businesses to disallow gatherings of more than ten (10) individuals and to cease recreational operations. Executive Order 55 was passed on March 30, 2020. This order forced all Virginia residents to stay at home unless they were allowed to leave for certain exceptions.

How Do the Virginia Executive Orders Impact Event Venues?

They close. The effect of these orders is that the vast majority of event venues such as wedding venues and theatres are not currently allowed to provide services as of the date of writing this article. As a result, many of these event venues have begun to offer online services. Some theatres are hosting online movie viewings to bring in revenue. 

This has created problems for event venues with events planned from March 23, 2020 until Executive Order 55 is lifted. There is no current deadline for the order being lifted. Unfortunately, we have no guidance on how long this will remain in place.

As a result, people are calling event venues demanding to cancel these events because they can no longer use the event space.

What Can Small Ev ent Venues and Consumers Do About The Closures?

For the most part, your rights as either a business or a consumer are going to be completed listed in your event contract. There is a clause known as a “force majeure” clause that essentially says what should happen if events spiral out of control. Rights are going to largely be on a case by case basis, so you should consult with a lawyer if you wish to cancel your event or reschedule your event. 

Many businesses opted for an online contract or opted to draft their own contract. As a result, they have weak force majeure clauses. This can create a lot of issues for both consumers and businesses. Another reason for a business to consult a lawyer is to have a new contract drafted to protect from future events such as this.

Either way, it is important for event venues and consumers work together to come up with creative solutions to the problem.

COVID-19 and Custody Issues in Virginia

School is shut down. Custody schedules around Virginia are in disarray. Many people have been calling asking how to handle these developments. Common questions include: a) do I have to allow the other parent to see the child, b) am I allowed to leave the house, c) are we in the summer schedule now, etc.

It is important to understand that these are trying times. This article will give some basic guidance on co-parenting from a legal perspective during a pandemic. However, at the end of the day, the best advice anyone can give is read your court order.

Common Covid Questions for Split Households

I would like to start by answering those most common questions. Generally, yes, unless there is something in your custody order to the contrary you must continue to follow it. Just because the court system is closed down does not mean the court order goes away. Furthermore, there is no order from the Virginia Governor, as of the time of writing this article, prohibiting you from traveling to exchange custody. It is unlikely that there will be such an order based upon how other states are responding. Finally, unless your court order says otherwise then you are unlikely to be operating under a summer schedule. Every custody order is different, but most orders adopt the school system’s definition of summer break.

Penalties For Ignoring Your Custody Order

The same penalties apply now as there would be if you were not following the custody order otherwise. The other parent can file a show cause and ask the court to find you in contempt for violating the court order. The court has a lot of power when hearing a show cause. The court can a) impose a heavy fine, b) impose some kind of jail punishment, c) give the other parent extra parenting time to make up for the delay and even, in limited circumstances d) consider a change in custody.

Additionally, violation of a custody order is still a crime in Virginia. You can be charged with a crime for intentionally violating an order. This can adversly impact background checks and have other consequences.

Talk To a Custody Lawyer

Now, more than ever, it is important to understand the specific wording of your custody order. Courts are likely to be inclined to punish severely parents they believe are actively taking advantage of this horrible situation. When in doubt, reach out to a lawyer to schedule a phone consultation and discuss your child’s specific needs and the terminology in the order.