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.

1. ARE YOU READY?
DISASTER PREP FOR
MEETING, CONVENTION, AND
TRADE SHOW PROFESSIONALS
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2. George G. Fenich, Ph.D.
Professor, East Carolina University
Marlene Blas, MTA, CMP
Associate Director, Meetings and Events
CA Western School of Law
Program Advisor and Instructor
California State University, San Marcos
©FENICH & BLAS FOR DMAI MARCH 2013 #destshow

3. 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.
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4. 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
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5. MORE RECENT
INTERPRETATIONS
of Force Majeure
–War
–Terrorism
–Disease
–Riot
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6. MOST RECENT
INTERPRETATIONS
of 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
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7. FORCE MAJEURE
THE EVENT PROPOSED AS FORCE MAJEURE MUST
PASS THREE TESTS
1. EXTERNALITY
DEFENDANT 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. IRRESISTIBILITY
CONSEQUENCES OF EVENT COULD NOT HAVE
BEEN PREVENTED
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8. 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!
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9. 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
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10. 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
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11. 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
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12. 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
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13. 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
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14. TAKEAWAYS &
CONCLUSION
• TAKEAWAYS
– ON DMAI WEBSITE
• http://www.slideshare.net/DestinationsShowcase
INCLUDES
– SIX EXAMPLES AND WHAT HAPPENED
– SAMPLE FORCE MAJEURE CLAUSE
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15. TAKEAWAYS &
CONCLUSION
– DISCUSSION OF
• Impossibility
• Impracticality
• Frustration of Purpose
• Insurance
– Travel , Event Cancellation
– WEBSITES
– BOOKS
– ATTORNEYS
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16. THANK YOU
• FOR MORE INFORMATION
• CONTACT EITHER
– MARLENE BLAS
– GEORGE FENICH
• ADDRESSES BELOW
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17. GEORGE G. FENICH, PH.D.
• PROFESSOR • PRINCIPAL
• SCHOOL OF • FENICH &
HOSPITALITY ASSOCIATES LLC
LEADERSHIP
• WEBSITE:
• EAST CAROLINA
UNIVERSITY fenich.com
• E-MAIL: • Voice: 252.561.5329
fenichg@ecu.edu • AUTHOR
– Meetings, Expositions, Events
• Voice: 252.328.2190 and Conventions: an
introduction to the industry
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18. Marlene Blas, MTA, CMP
• Associate Director for • Program Advisor and
Meetings and Events Instructor
• CA Western School of • California State
Law University, San
Marcos
• E-MAIL:
mblas@cwsl.edu • WEBSITE:
• Voice: 619.525.1689 http://www.csusm.edu/
el/certificateprograms/
eventplanning/beaplan
ner.html
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