Laura Baucus Examines How Automotive Supply Chain Crises May Affect Litigation Over the Next Decade in Automotive World

Laura Baucus was quoted extensively in the Automotive World article, “Automotive supply chain crises pose new questions for litigation.”

In the article, Baucus discussed supply chain disruptions in the automotive industry, such as the latest microchip shortage, and the effect on potential litigation for the next decade. She touches on how these issues disrupt various production lines and the results of any shutdown could lead to layoffs, reduced profits and severe reputational damages—highlighting that it would be difficult to quantify what would happen if the supply chain actually stops.

When it comes to force majeure clauses, Baucus points out that the chip crisis is very different than other disruptions, such as hurricanes or a workers’ strike. Furthermore, she stresses that contracts in the U.S. were not written to address situations where general disruption and various factors can result in suppliers not being able to fill orders. Importantly, she warned that contracts in existence before the pandemic may not help in court since there are entities seeking to expand the definition of legal excuse for force majeure.