Coronavirus

The impact of the coronavirus on organizations and government bodies raises many legal questions. At present, all our teams are preparing advice to various clients on how to manage this impact. From our various disciplines, we offer advice about the impact on the supply chain; performing (or being unable to perform) contractual obligations; rights and obligations of employers and employees; liability for measures that are taken; funding problems; and (emergency) orders from mayors.

We have created a multidisciplinary team to help you minimize this impact and limit risks.

As an organization and employer, we have taken the following measures ourselves:

• All our associates are working from home.
• Appointments will only take place by telephone or video conference.
• Business continuity is guaranteed. All work processes are guaranteed on our part. You will have access to our associates by e-mail, telephone or video conference.
• All events have been cancelled until after the summer holidays.

Below, we present a summary of the main legal aspects you may be confronted with. Please contact one of our specialists if you require more information and advice.

As employer you have a statutory duty of care to provide employees with a safe and healthy (working) environment. For example, that means that the employer has to inform his employees what to do and not to do and take precautionary measures.

Our expert Eylard van Fenema answers your most urgent questions in this article.

An epidemic crisis, such as the Coronavirus (COVID-19) disease outbreak, is an exceptional and developing situation during which organizations must immediately take precautionary measures to prevent or limit the (further) spread of the virus and to avert crisis situations for their organization from a human, functional and financial standpoint.

Whilst taking precautionary measures it can be necessary for an organization to process certain information about specific persons, such as employees, contractors, staff of suppliers and vendors, as well as their family and friends. The precautionary measures taken – which must, of course, be appropriate to the specific risk that applies to an organization – can force organizations to inter alia process personal data about whether a person has recently visited areas where the Coronavirus is spreading, upcoming planned trips to infected areas, symptoms of illness that are similar to the Corona virus, body temperature, etc. Some of these personal data relate to a person’s physical health situation and are therefore considered ‘health data’ under the General Data Protection Regulation (GDPR).

In order for an organization to legitimately process personal data, and in particular: health data, the (strict) rules of the GDPR and the applicable local implementation acts need to be complied with.

Our expert Hester de Vries answers your most urgent questions in relation to the data protection of personal data processed in the context of the Coronavirus in this article.
Contact her directly via Hester.de.Vries@kvdl.com

Commercial relationships and trade are impacted in many ways. Sales events and conferences are cancelled, travel is restricted and certain personnel isolated Measures can be imposed by national governmental bodies or proactively issued by companies. Consequently this results in delays in transactions, threats to continuity of critical supply of raw materials and late deliveries to end customers. Business partners, especially when located in different countries (high risk or non high risk) may see the necessity of measures differently. Reaching (settlement) agreements on damage control measures and division of liability between the parties often has to be made under extreme time pressure. This entails an increased risk of escalation into disputes.

Our expert Martine de Koning works around the clock to help you to protect and grow your business in these challenging times.

Apart from the general impact on the various players in the insurance industry, the coronavirus obviously also has direct consequences for all kinds of insured risks. This is clear, inter alia, for travel and event insurances and insurances for business interruption. The first questions about this have come to us over the past few days.

Based on experiences with previous pandemics, we expect that more product lines in the insurance industry may be affected and that complex coverage and liability discussions may arise. After transmission of the virus, interesting questions may arise, for example: who is responsible, the authorities (for public health), the employer, or even the directors if a company has not taken adequate measures for its employees? In addition, it was already in the news that companies in these difficult times are shifting their business activities (e.g. restaurant owners who are now selling stock or starting a delivery service) which can lead to problems around the changed insured capacity (e.g. because of the business use of cars or product liability).

Because of our combined experience with both the development of policy conditions and cover disputes and complex liability issues in various lines of business, we are able to think along with a broad view and understanding of the industry in these extensive problems.

Please contact our insurance expert Chris van Dijk for all your questions

By ministerial regulation (Regulation 2019-nCoV), corona has been designated as a virus in category A. As a result, the chairman of the Security Region (one of the mayors from the region) has the power to take measures aimed at persons. If necessary, he may order persons who are infected – or for whom there is a valid reason to assume they are infected – to be admitted to a hospital, to have them medically checked, or to place them in quarantine. He can also impose a ban on performing work that carries a serious risk for the spread of the virus. In addition, the law provides for numerous other measures, including the closing of buildings and sites, and measures directed at passenger transport. Furthermore, mayors also have their ordinary emergency powers pursuant to the Dutch Municipalities Act.

Please contact our expert Jan van der Grinten for related questions.

The Corona Virus has major implications for hotel operators and owners. Occupancy and mice businesses are under high pressure, as governments and companies impose travel restrictions and cancel events and trips. Hotel owners must fear for not breaching their financial covenants. In particular, hotel management contracts, variable lease contracts and similar hybrid constructions will be challenged.

Also retail property may face considerable challenges because of the possible closure of shopping and/or outlet centers. What if the landlord decides to close the entire shopping center because of the Corona Virus, whether or not on the instructions of the authorities. Can the lessee of an individual retail space then claim rent reduction and / or compensation for damages?

Our Hospitality Team and our Leasing Team are experts in the various operating and lease contracts. Please contact Nico Jacobs for any related questions.

The coronavirus impacts the construction sector in various ways. Shortage of staff, problems with deliveries and additional safety measures are but a few examples. The coronavirus may harm the contractor as well as the client, or both. In these difficult times our construction law team is ready to help you. In this document Jan Hein Meerburg describes relevant clauses and points of attention within a UAV 2012 contract and in this document he will discuss the problems arising from a UAV-GC 2005 contract.

It is now clear that the coronavirus impacts the business of a great number of companies. Many companies are experiencing problems with continuity or foresee such problems.

Our Insolvency & Restructuring team can help you solve the issues that might arise from this situation. For example, we specialize in:

• strategic and practical advice to companies in difficulties
• directors’ liability issues
• group restructuring
• financial restructuring
• negotiations with your bank
• creating securities
• terminating contracts
• recovering securities
• insolvency litigation

We are also greatly experienced in cross-border cases. Also we have an international network of specialists who are practising in more than 100 countries.

If you have questions, please contact our expert Bart de Man.