Peter Gulia Posted March 25, 2020 Posted March 25, 2020 Is anyone aware of a retirement-services provider using impossibility or a contract’s force majeure clause as a reason not to do something that otherwise would be a service obligation? Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com
Larry Starr Posted March 25, 2020 Posted March 25, 2020 3 hours ago, Peter Gulia said: Is anyone aware of a retirement-services provider using impossibility or a contract’s force majeure clause as a reason not to do something that otherwise would be a service obligation? Not aware of any, but I have had a couple of conversations with clients who have brought up force majeure issues on other business issues (like paying rent to the mall when the mall has been closed by the local government). I assume this question is somehow related to the corona virus issue? Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com
Peter Gulia Posted March 25, 2020 Author Posted March 25, 2020 Yes, it's about the public-health emergency. My observation, so far, is that service providers and service recipients are cooperating nicely, making it unnecessary to evaluate questions of law. Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com
david rigby Posted March 25, 2020 Posted March 25, 2020 Peter, would it be hasty to make any such application without accounting for any provisions in "relief" legislation and regulation? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Peter Gulia Posted March 25, 2020 Author Posted March 25, 2020 Quote Let me give an example: My client has a service agreement with a recordkeeper. The agreement obligates the recordkeeper to provide a specified number of workers at the client’s location. That location is not one under any government-ordered shutdown. It’s not strictly impossible for the recordkeeper to perform its service obligation. The recordkeeper requested my client’s assent to provide the workers by technology presence, rather than face-to-face presence. The assent made it unnecessary for either party to consider impracticability or force majeure issues. Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com
Larry Starr Posted March 25, 2020 Posted March 25, 2020 1 hour ago, Peter Gulia said: Let me give an example: My client has a service agreement with a recordkeeper. The agreement obligates the recordkeeper to provide a specified number of workers at the client’s location. That location is not one under any government-ordered shutdown. It’s not strictly impossible for the recordkeeper to perform its service obligation. The recordkeeper requested my client’s assent to provide the workers by technology presence, rather than face-to-face presence. The assent made it unnecessary for either party to consider impracticability or force majeure issues. Can you spell COOPERATION? Sure you can! ? Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com
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