Lancashire companies warned over Brexit litigation threat

Fylde coast businesses can help to avoid possible Brexit legal issues by being open with their business partners on its potential effects, a county lawyer warns.
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With only days until the Brexit transition period ends, Jon Esner from Napthens says that businesses need to be honest with their customers and suppliers now to reduce the risk of litigation should a deal not be reached.

The result of new procedures could mean delays to shipments from suppliers in addition to increased costs from customs duties, meaning exporters to the EU could fail to fulfill contractual obligations, leaving them exposed to litigation.

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He said: “For companies who export to the EU there is a very real chance you will be impacted by rising costs from tariffs, regulations and potential delays, especially if a deal isn’t agreed with the EU.

Jon EsnerJon Esner
Jon Esner

“It is vital that you check your contracts to see whether you have set times of delivery that you may not be able to comply with. If so, you could be at risk of litigation.

“Exporters with contracts in place for delivery may be able to rely on a force majeure clause to manage any delayed deliveries but for it to be valid you may have to give notice to your customer as soon as possible. That means speaking to customers now and making them aware of the issues before you become liable for failing to fulfill the contract.

“We do expect to see rising litigation and disputes from unfulfilled contracts as a result of Brexit delays, so it is important that you take steps now before it is too late.”

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