Crisis Management Resource Center | Pillsbury Law | Insights
Crisis Management Resource Center
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  • Confronting and Managing Difficult Situations: Leadership in the Time of Crisis Back to Site Load in Main Window
    03/26/2021
    Pillsbury Partners Amanda Halter and Andrew Troop will participate in a crisis management presentation during the ABA Business Law Virtual Spring Meeting.
  • New York Budget Raises Tax Rates, Provides Relief to Address Pandemic Back to Site Load in Main Window
    04/16/2021

    The New York Legislature passed New York State’s Fiscal Year 2022 budget (Budget Bill) on April 6 and 7, 2021. The Budget Bill now awaits Governor Cuomo’s signature, which is expected this week. Under the New York Constitution’s Executive Budget process, the appropriations provisions included in the Governor’s original proposed budget became law immediately upon being passed by the Legislature. If Governor Cuomo takes no action, the entirety of the bills will become law ten days after being passed by the Legislature.

  • The Pillsbury Industry Insights Podcast Back to Site Load in Main Window
    07/30/2020

    Join host Joel Simon and guests as they discuss important and emerging topics impacting various industries in 15 minutes or less. 

  • With Limited Time Left, Congress Begins Use of the Congressional Review Act Back to Site Load in Main Window
    03/26/2021

    With time running short to introduce joint resolutions under the Congressional Review Act, Congress has begun to act. Legislators have now introduced three joint resolutions seeking fast-track procedures to overturn Trump-era regulations under the Congressional Review Act before the time limit expires on April 4, 2021. One of those joint resolutions seeks to overturn a methane rule issued by the Environmental Protection Agency (EPA), which Pillsbury identified as a likely target in January of this year. The second joint resolution targets a rule approved by the Equal Employment Opportunity Commission (EEOC) which sets out the process for settling claims, sometimes called the “conciliation” rule. The third targets the “true lender” rule finalized by the Office of the Comptroller of Currency in October 2020.

  • Tour de Force: Evolving Force Majeure Considerations One Year into the Pandemic Back to Site Load in Main Window
    03/24/2021

    When the pandemic started in the spring of 2020, most force majeure disputes revolved around relatively straightforward questions: did the clause in question cover pandemics and/or governmental shutdown orders (or, in some instances, the resulting economic fallout)?

  • Stimulus Bill Offers Much Needed Assistance to the Restaurant Industry Back to Site Load in Main Window
    03/13/2021

    President Biden signed into law the comprehensive relief bill known as the American Rescue Plan Act on March 11, 2021. The $1.9 trillion relief package delivers targeted support for foodservice operators and drinking establishments in the form of grants under the Restaurant Revitalization Fund, in addition to bolstering existing relief programs established under the CARES Act and Economic Aid Act such as the Paycheck Protection Program. The Restaurant Revitalization Fund will be administered by the Small Business Administration.

  • SBA Issues Eligibility and Application Guidance for Shuttered Venue Grants Back to Site Load in Main Window
    03/11/2021

    The Shuttered Venue Operators Grant Program was created, at least on paper, on December 27, 2020, by Section 324 of the Economic Aid to Hard-Hit Small Businesses, Non-profits and Venues Act (Economic Aid Act). The Grant Program is intended to provide funding for live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators and talent representatives that have been significantly impacted by the COVID-19 pandemic. We've previously summarized the Grant Program provisions of the Economic Aid Act and the SBA’s discussion of Frequently Asked Questions, published on February 5, 2021.

  • Subchapter V Alert–Congress Begins Legislative Action to Extend $7.5 Million Debt Ceiling, Which Remains Set to Expire on March 27, 2021, if Not Passed and Enacted Back to Site Load in Main Window
    02/27/2021

    This is our third alert on Subchapter V issues, the first being on the CARES Act’s expansion of eligibility under Subchapter V, and the second regarding recent changes to section 365(d)(3) of the Bankruptcy Code. Here, we discuss the potential implications of the expiring $7.5 million debt ceiling and newly introduced legislation to extend the debt ceiling for an additional year to March 27, 2022.

  • Pillsbury Foundation Donates $50,000 to Storm-Stricken Texas Communities Back to Site Load in Main Window
    02/25/2021

    Consistent with Pillsbury’s history of corporate social responsibility, the Pillsbury Foundation Board has donated $50,000 to the Houston Food Bank and Central Texas Food Bank (Austin).

  • Texas Freeze: Crisis Management Best Practices for Businesses Picking Up the Pieces Back to Site Load in Main Window
    02/23/2021

    After an unprecedented freeze that impeded travel and disrupted electricity, heat, internet, cellular and water services for days—upending lives and businesses across the state on a massive scale—the cleanup continues, with losses still to be tabulated, and for many, water still to be restored. And, it all happened against the backdrop of the ongoing COVID-19 pandemic in which vaccination efforts are in a race against new virus variants. For businesses picking up the pieces, deploying a few key crisis-management best practices will help:

  • COVID-19 Business Interruption Losses: Time Is of the Essence to Pursue Coverage Back to Site Load in Main Window
    02/12/2021

    The United States declared a national emergency in response to COVID-19 on March 13, 2020, and states quickly followed with stay-at-home orders that impacted businesses and institutions nationwide. More than 10 months have passed since the COVID-19 pandemic emerged in the United States and the prevalence of the virus has had significant impacts, not only with respect to the number of people infected and lives lost, but also to the widespread physical damages and economic losses suffered by businesses.

  • Federal Support for Defense Uses of Advanced Nuclear Back to Site Load in Main Window
    02/04/2021

    Summary of the EO

    On January 12, 2021, former President Trump issued an EO on Promoting Small Modular Reactors for National Defense and Space Exploration. The EO directs the Department of Energy (DOE), Department of Defense (DOD), and NASA to take actions to coordinate their nuclear-related activities, move forward with certain ongoing nuclear projects and promote advanced reactor and small modular reactor (SMR) technologies. The purpose of the EO is to take steps to revitalize the U.S. nuclear sector, reinvigorate the U.S. space exploration program, develop diverse energy options for national defense needs and advance U.S. technological supremacy and leadership.

  • COVID-19 Relief: Loan Forgiveness Requirements and Loan Review Procedures for Renewed Paycheck Protection Program Back to Site Load in Main Window
    01/26/2021

    On December 27, 2020, the Economic Aid Act was signed into law. The Economic Aid Act reinitiated the PPP, appropriating $284 billion for both First and Second Draw PPP Loans. The Act amended borrower eligibility criteria, added permissible uses of the loan proceeds and established new eligibility requirements for borrowers seeking Second Draw PPP Loans. We discussed these new provisions and SBA’s first implementing regulations here.

  • Tour de Force: Contract Terminations Due to COVID-19-Based Force Majeure – Natural Disasters Back to Site Load in Main Window
    01/23/2021

    On December 16, 2020, in a decision likely to have far-reaching implications for COVID-19 contract disputes, Judge Denise Cote of the Southern District of New York found that COVID-19 qualifies as a “natural disaster” excusing a contractual counterparty’s nonperformance under a force majeure provision. The plaintiff in JN Contemporary Art LLC v. Phillips Auctioneers, LLC, No. 1:20-cv-04370-DLC (S.D.N.Y. 2020) had entered into an agreement with an auction house (the defendant), pursuant to which the auction house agreed to hold an in-person event in May 2020 to sell the plaintiff’s artwork and guaranteed that the plaintiff would receive at least $5 million in sales proceeds. In March 2020, following governmental shutdown orders, the auction house postponed the event until June. Come June, the auction house terminated the agreement, in part on the basis that the economic conditions brought on by the pandemic would prevent it from realizing any profit on the sale, after paying the guaranteed amount to the plaintiff. The plaintiff filed suit for breach of contract shortly thereafter; the auction house moved to dismiss, arguing termination was permitted under the agreement’s force majeure provision, which provided:

  • President Biden’s “American Rescue Plan” Back to Site Load in Main Window
    01/20/2021

    President Biden recently unveiled a broad-reaching $1.9 trillion stimulus package, which will likely be the new administration’s first legislative priority. The majority of the plan focuses on providing support to workers and families hurt by the pandemic, as well as improvement to medical treatment and the rapid distribution of vaccines. However, there are key provisions that will be of importance to the private sector, as well as public and private schools, that we outline below.

  • COVID-19 Relief: Understanding New Paycheck Protection Loan Opportunities Back to Site Load in Main Window
    01/13/2021

    On December 27, 2020, President Trump signed the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act) into law. The Economic Aid Act reinitiates the Paycheck Protection Program (PPP), appropriating $284 billion for both First and Second Draw PPP Loans. The Economic Aid Act reopens the Paycheck Protection Program, amends borrower eligibility criteria, adds permissible uses of the loan proceeds and establishes new eligibility requirements for borrowers seeking Second Draw PPP Loans. Community financial institutions were able to begin making First Draw PPP Loans on January 11 and will begin Second Draw PPP Loans on January 13, with wider availability from other lending institutions to follow. The application form for a First Draw PPP Loan can be found here, and the application for a Second Draw PPP Loan can be found here.

  • Bankruptcy Court Rules Bankruptcy Code Does Not Permit Extended Rent Holiday for Retail Debtors Back to Site Load in Main Window
    01/11/2021

    This is the eighth in a series of alerts on insolvency topics affecting real estate. In this alert, we discuss the portion of the recent Chuck E. Cheese decision denying the debtor’s/tenant’s request to defer paying rent after the 60-day “rent holiday” period prescribed in section 365(d)(3) of the Bankruptcy Code.

  • Legal and Practical Considerations for COVID-19 Vaccine Mandates in the Workplace Back to Site Load in Main Window
    01/12/2021

    The good news that COVID-19 vaccinations have begun to be deployed has led to new decision points for employers: once their employees become eligible for the vaccine, should employers mandate that their workers receive the vaccine? Similar questions arise with opening premises and events to customers, conference attendees and other visitors. While requiring proof of vaccination may at first blush seem like a responsible measure, legal and practical considerations militate against an across-the-board vaccination mandate for most organizations.

  • Latest COVID-19 Relief and Government Funding Package Includes Key Communications Provisions Back to Site Load in Main Window
    01/08/2021

    The Continuing Appropriations Act, 2021 and Other Extensions Act, a $2.3 trillion COVID-19 relief and omnibus government funding package, contains several noteworthy communications-related measures, including $7 billion in funding for broadband initiatives and expanded television and radio station eligibility for the Paycheck Protection Program administered by the Small Business Administration (SBA).

  • COVID-19 Relief Act Provides Grants for Shuttered Venue Operators Hard-Hit by the Pandemic Back to Site Load in Main Window
    01/04/2021

    COVID-19 Relief Act

    On December 27, 2020, President Trump after initially balking, signed into law as part of the Consolidated Appropriations Act of 2021, H.R. 133, which, among its 5,600 pages, $900 billion, and other COVID-19 relief, appropriates $15 billion for Grants for Shuttered Venue Operators (Grants) to be made by the Small Business Administration (SBA). We recently provided a client alert (here) on the changes made by the new law, to a key SBA program, the Paycheck Protection Program (PPP). The PPP changes include making second draw loans available for the hardest-hit businesses and clarifying that forgiven PPP loans are tax deductible. The Act also provides certain tax benefits for Grants.