are your ready? disaster prep for meeting, convention, and trade show professionals
DESCRIPTION
The most critical step in being able to deal with a disaster is being prepared for one in the first place. Don't panic: this session will get you started. While hurricanes are the disasters that may come to mind first, what about inland flooding, power outages, illnesses, travel bans, strikes, national security, etc.? This interactive session addresses thes issues by using case studies to provide insight into dealing with catastrophes and disasters, the concept of force majeure, and how and when it applies.TRANSCRIPT
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ARE YOU READY?DISASTER PREP FOR
MEETING, CONVENTION, AND TRADE SHOW PROFESSIONALS
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George G. Fenich, Ph.D.Professor, East Carolina University
Marlene Blas, MTA, CMPAssociate Director, Meetings and Events
CA Western School of LawProgram Advisor and Instructor
California State University, San Marcos
©FENICH & BLAS FOR DMAI MARCH 2013
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INTRODUCTION• PERSONAL EXAMPLES
– ATLANTIC CITY– HURRICANE KATRINA– CALIFORNIA WILDFIRES, EARTHQUAKES, TSUNAMIS
• DISCLAIMER– The materials, concepts and opinions presented today are
for educational purposes only. The presentation does not represent ‘legal advice’ and attendees are encouraged to seek legal opinions from advisors/attorneys licensed in their respective jurisdictions.
– The events depicted in the cases are fictitious. Any resemblance to real life is purely coincidental.
©FENICH & BLAS FOR DMAI MARCH 2013
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HISTORICAL CONTEXT• Force Majeure
– French term literally meaning a superior force
• Circumstances beyond anyone’s control• Also known as Acts of God
– Traditionally triggered by natural disasters• Flood• Earthquake• Fire• Volcanic eruption
©FENICH & BLAS FOR DMAI MARCH 2013
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MORE RECENT INTERPRETATIONSof Force Majeure
–War–Terrorism–Disease–Riot
©FENICH & BLAS FOR DMAI MARCH 2013
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MOST RECENT INTERPRETATIONSof Force Majeure
• The following have either been negotiated into some contracts or put forth in legal actions as Force Majeure
• Government regulation• Government travel advisories• Curtailment of transportation services• Strikes• Labor Disputes• Civil disorder
©FENICH & BLAS FOR DMAI MARCH 2013
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FORCE MAJEURE
THE EVENT PROPOSED AS FORCE MAJEURE MUST PASS THREE TESTS
1. EXTERNALITYDEFENDANT MUST HAVE NOTHING TO DO WITH THE EVENT
2. UNPREDICTABILITY EVENT MUST NOT HAVE BEEN FORESEEN
IF IT COULD BE FORESEEN
DEFENDANT OBLIGED TO PREPARE FOR IT
3. IRRESISTIBILITYCONSEQUENCES OF EVENT COULD NOT HAVE BEEN PREVENTED
©FENICH & BLAS FOR DMAI MARCH 2013
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APPLICATION of Force Majeure
• If Force Majeure occurs – One or both parties will be excused from performance under the
contract• A Force Majeure provision does not have to appear in a contract for the
concept to be applicable– However, without Force Majeure clause in contract,
» Circumstances are open to interpretation
• Based on Common Law principles of• Impossibility• Impracticality• Frustration of Purpose
• Event that triggers “Force Majeure”– Beyond control of either party– Not foreseeable!
©FENICH & BLAS FOR DMAI MARCH 2013
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LET’S CONSIDER SOME CASES
• FIVE CASES• Two tables have same case
– 8 TO 10 people per table– One table must take position of planner/buyer – One table must take position of supplier/seller– Develop argument to support position
» Run like presentation to jury– Each table work on developing argument
• Selected Tables will publicly ‘present their arguments’
– Each side / position will be heard– Audience will ‘vote’ to support one position or other
©FENICH & BLAS FOR DMAI MARCH 2013
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WHAT COMES NEXT?
• AT THE CONCLUSION OF CASE DISCUSSIONS– ADDITIONAL MATERIAL
• POSTED ON WEBSITE
– WILL INCLUDE• REVIEW OF WHAT HAS BEEN COVERED• ADDITIONAL INSIGHTS INTO FORCE MAJEURE• DETAILED ‘TAKE-AWAYS’
– CONCLUDING COMMENTS / QUESTIONS
©FENICH & BLAS FOR DMAI MARCH 2013
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LET’S DISCUSS WHAT WE HAVE COVERED
• FORCE MAJEURE
• ACTS OF GOD
• IMPOSSIBILITY / IMPRACTICALITY OF PERFORMANCE
• TRIGGERING EVENT MUST ‘NOT’ HAVE BEEN FORESEEABLE– IF FORESEEABLE, THEN MUST BE LISTED IN
CONTRACT
©FENICH & BLAS FOR DMAI MARCH 2013
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FORCE MAJEURE
• APPLICABILITY IS VERY MUCH OPEN TO INTERPRETATION
• IS EVERY BIT AS NEGOTIABLE AS – RATES, DATES, SPACE
• CRITICALLY IMPORTANT CONTRACT CLAUSE– CAN PREVENT MEETING/EVENT FROM BEING A
FINANCIAL DISASTER• IN THE FACE OF ‘UNFORESEEN’ CIRCUMSTANCES
©FENICH & BLAS FOR DMAI MARCH 2013
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FORCE MAJEURE IN CONTRACTS
• CONSIDER WORDING CLAUSE TO INCLUDE LESSER STANDARD OF– IMPRACTICABILITY– FRUSTRATION OF PURPOSE
• MAKE BROAD TO INCLUDE ‘PARTIAL TERMINATION’ OF PERFORMANCE
• CLAUSE SHOULD COVER WELL KNOWN, AS WELL AS UNKNOWN, HAZARDS
©FENICH & BLAS FOR DMAI MARCH 2013
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TAKEAWAYS &CONCLUSION
• TAKEAWAYS– ON DMAI WEBSITE
• http://www.slideshare.net/DestinationsShowcase
INCLUDES– SIX EXAMPLES AND WHAT HAPPENED– SAMPLE FORCE MAJEURE CLAUSE
©FENICH & BLAS FOR DMAI MARCH 2013
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TAKEAWAYS &CONCLUSION
– DISCUSSION OF• Impossibility• Impracticality• Frustration of Purpose• Insurance
– Travel , Event Cancellation
– WEBSITES– BOOKS– ATTORNEYS
©FENICH & BLAS FOR DMAI MARCH 2013
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THANK YOU
• FOR MORE INFORMATION
• CONTACT EITHER – MARLENE BLAS– GEORGE FENICH
• ADDRESSES BELOW
©FENICH & BLAS FOR DMAI MARCH 2013
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GEORGE G. FENICH, PH.D.
• PROFESSOR
• SCHOOL OF HOSPITALITY LEADERSHIP
• EAST CAROLINA UNIVERSITY
• E-MAIL: [email protected]
• Voice: 252.328.2190
• PRINCIPAL
• FENICH & ASSOCIATES LLC
• WEBSITE:
fenich.com
• Voice: 252.561.5329
• AUTHOR– Meetings, Expositions, Events
and Conventions: an introduction to the industry
©FENICH & BLAS FOR DMAI MARCH 2013
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Marlene Blas, MTA, CMP
• Associate Director for Meetings and Events
• CA Western School of Law
• E-MAIL: [email protected]
• Voice: 619.525.1689
• Program Advisor and Instructor
• California State University, San Marcos
• WEBSITE:
http://www.csusm.edu/el/certificateprograms/eventplanning/beaplanner.html©FENICH & BLAS FOR DMAI MARCH 2013