Third Wave Farms out of Kentucky has requested that the court nullify its contract with Pure Valley Solutions in Oregon. The company is seeking this as they claim that neither party was able to uphold the agreement and that current measures that are being taken involving the coronavirus makes the contract void. The plea was sparked by a $9 million invoice that the Oregon LLC sent them as part of their contract to process and produce winterized CBD oil.
Third Wave Farms claims that the Oregon does not currently have the capacity to produce the 5,000 liters agreed upon or meet the specifications laid out for the product in the contract.
The farm is asking that the court declare the agreement not enforceable so that they can terminate it, “in light of the spread of the coronavirus and the state of emergency declared in Kentucky … and under similarly applicable executive order(s) by the governor in the state of Oregon.”
Cases like this are an early look at whether the federal courts will consider the pandemic an acceptable trigger. If they do, the corona virus will count to trigger the wording in many contracts that are void under force majeure, or events that the company can’t control.
Currently Governors have declared a state of emergency. Andy Beshear of Kentucky declared the state of emergency on March 6 and Kate Brown of Oregon declared it on March 7.