Litigation Notes

High Court draws adverse inferences from failure to call relevant witness, and finds default interest clause to be an unenforceable penalty

The High Court has rejected a claim for misrepresentation, finding that although a fraudulent misrepresentation had been made, it had not induced the …

High Court finds acceleration clause is susceptible to rule on penalties, but declines to apply the rule as the amounts in question were payable in any event under a separate clause

Supreme Court restores orthodox approach to liquidated damages for delay where work never completed

The Supreme Court has overturned a Court of Appeal decision which held that a clause providing for liquidated damages for delay did not apply where the …

High Court finds clause imposing harsh consequences for breach of term aimed at protecting IP rights was not an unenforceable penalty

In a recent decision, the High Court has found that a clause in a settlement agreement which was aimed at protecting a business's IP rights was not …

Employment Appeal Tribunal finds penalty rule did not apply where no breach relied on

The Employment Appeal Tribunal (EAT) has held that the rule against penalties did not apply where an employer imposed certain contractual provisions …

Court of Appeal finds clause imposing liquidated damages for delay did not apply where work was never completed

In a recent decision, the Court of Appeal held that a clause providing for liquidated damages for delay did not apply where the contractor failed to …

High Court finds liquidated damages clause for delay in construction contract was not unlawful penalty

The High Court has found that clauses in engineering, procurement and construction (EPC) contracts relating to solar power plants, which provided for a …

High Court finds clause allowing landlord to terminate side letter and insist on payment of higher rent in lease falls foul of rule on penalties

In a recent decision, the High Court has held that a clause in a side letter, which allowed a landlord to terminate the side letter and insist …

Supreme Court rewrites English law rule on penalties

In a judgment handed down this morning, the Supreme Court has in effect re-written the rule on penalties, saying that the underlying rationale of the …