The Walt Disney World Swan hotel is currently in a lawsuit with the International Union of Operating Engineers (IUOE). The group had planned a conference at the Swan for early 2022 but has now canceled due to COVID-19. Now, the Walt Disney World Swan hotel is trying to enforce a $1 million cancelation fee.
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About 400 people were expected to attend the conference from January 27 to February 5, 2022. A contract between the IUOE and the Walt Disney World Swan hotel for this event was signed in 2018, before the Covid pandemic hit. The IUOE notified the Swan hotel on Dec. 2 that the conference would be canceled due to the delta and omicron COVID variants. The group also cited a force majeure provision in the contract they had with the hotel.
A force majeure provision clause allocates the risk of loss if performance is hindered, delayed, or prevented because of an event that the parties could not have anticipated or controlled. The COVID pandemic could be considered an “event that the parties could not have anticipated or controlled”.
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The hotel has refused to cancel the contract and IUOE faces a nearly $1.05 million fee for canceling. That is the amount for how much the event was supposed to generate in revenue for hotel rooms, food and other expenses.
“Against the backdrop of the Hotel’s tone-deaf insistence that IUOE send its conference attendees into a dangerous environment, COVID-19 cases and deaths in Florida continue to rise, and the CDC guidelines continue to advise against large gatherings and promote social distancing of at least 6 feet,” IUOE said in the lawsuit. “Travel to and from the event will place many attendees in situations where their exposure to COVID-19 and potential serious illness is a statistical certainty. IUOE believes the public health crisis and the threat to the health and the lives of its 400 attendees will render performance under the Contract illegal, impossible or impracticable.”
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