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Liquidated Damages United Kingdom

BCLP

Can liquidated damages clauses set general cap?

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A pair of cases in the past two years have come to opposite conclusions about whether general damages can be capped by contract provisions for liquidated damages. Liquidated damages clauses are a common feature of...more

A&O Shearman

Can you contract with yourself?

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While looking at the recoverability of damages, the High Court has taken a look at whether you can contract with yourself. When thought of in humans terms, the answer seems obvious: surely my left arm cannot contract with my...more

A&O Shearman

Watts at stake when there's a delay?

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The High Court has provided guidance on a contractor’s general right to suspend works, the enforceability of liquidated damages upon termination, and the recoverability of financing costs as part of loss of revenue....more

A&O Shearman

Stop the press; a liquidated damages case that isn’t about penalties…

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You might be forgiven for thinking that any time a party wants to get out of a liquidated damages provision, it argues the clause is an unenforceable party. However, in a recent case, a contractor sought to avoid liquidated...more

J.S. Held

Practical Completion: The New Context for Certifying Higher-Risk Buildings in England

J.S. Held on

The decision to certify as to when the works under construction contracts in the United Kingdom (“UK”) have reached ‘Practical Completion’ (“PC”) can often cause difficulties for the Contract Administrator (“CA”), as the...more

Pillsbury - Global Sourcing Practice

Enforceability of Penalties for Late Delivery in the UK: UK Supreme Court Confirms the Law of Liquidated Damages

For some time the position under English law relating to the recovery of liquidated damages from a contractor as penalty for late delivery has been unclear where the contract terminates before the contractor completes the...more

Pillsbury - Gravel2Gavel Construction & Real...

Point Taken: The UK Supreme Court Finally Confirms the General Law of Liquidated Damages (LDs)

In a long-awaited decision which overturned the Court of Appeal’s ruling in the Triple Point Technology vs PTT Public Company case, the UK Supreme Court confirmed the general law of LDs, which is that—absent clear words to...more

White & Case LLP

Managing construction risks in Asia-Pacific: Singapore

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With a significant and coherent body of case law on construction disputes, Singapore is a hub for resolving many construction disputes across the Asia-Pacific region. Singapore is a vibrant country in Southeast Asia. With...more

Latham & Watkins LLP

UK Supreme Court Affirms “Orthodox” Approach to Liquidated Damages in English Law

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Importantly for commercial parties, the decision indicates that parties are assumed to be aware of this approach. Liquidated damages clauses provide pre-agreed remedies for contracting parties in the event of particular...more

King & Spalding

Further Court Guidance on the Enforceability of Liquidated Damages

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Shortly after the long-awaited Supreme Court judgment on the operation of liquidated damages in the event of termination, the English courts have delivered another important judgment on the operation of liquidated damages,...more

BCLP

Triple Point v PTT: UK Supreme Court also interprets a contractual cap on liability

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The UK Supreme Court recently handed down a highly anticipated judgment on the interpretation of clauses which pertain to liquidated damages and limitations on a contractor’s liability for damages. Most notably, the Supreme...more

Vinson & Elkins LLP

Back To The Traditional Approach: Supreme Court Overturns Court Of Appeal Decision On Liquidated Damages In Triple Point

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The Supreme Court’s recent decision has restored the orthodox approach to interpreting liquidated damages clauses and has brought some certainty following the Court of Appeal’s judgment in 2019. It has also emphasised the...more

A&O Shearman

UK Supreme Court: liquidated damages survive termination

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The UK Supreme Court has held that accrued liquidated damages survived termination where the contractor never completed the work in question....more

A&O Shearman

Liquidated damages payable on termination not unenforceable penalty

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The law around unenforceable penalty clauses is well-known but the question of how to apply it in practice is notoriously tricky. The court has recently looked at this issue again in De Havilland v Spicejet....more

White & Case LLP

Claims For Liquidated Damages Against Subcontractors

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Main contractors often make claims against subcontractors for liquidated damages for delay. A question that sometimes arises is whether liquidated damages may be claimed by a main contractor where there is no corresponding...more

BCLP

Willow v MTD: a successful Part 8 challenge after Hutton v Wilson

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Following Hutton v Wilson, Part 8 challenges to adjudication have become less common. However, in Willow v MTD, the TCC has made a declaration setting aside part of an adjudicator’s decision where the adjudicator erred in his...more

Hogan Lovells

Liquidated damages on work never completed

Hogan Lovells on

The English Court of Appeal recently considered what should happen when a contractor, through its own fault, never delivers any completed work, despite having contracted to do so by a particular date. In Triple Point...more

White & Case LLP

Termination & Liquidated Damages: Less Clear than Ever

White & Case LLP on

The Court of Appeal of England & Wales considered, in respect of a delayed software project, whether a liquidated damages provision survived termination of the contract....more

White & Case LLP

Liquidated Damages for Post-Termination Delay?

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The High Court of England & Wales considered, in respect of the delayed completion of a solar project, the appropriate end date for liquidated damages under a terminated construction contract....more

White & Case LLP

Liquidated damages in energy projects

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In a noteworthy decision to participants in the energy industry, the High Court of England & Wales examined what constitutes a valid liquidated damages clause in the event of delayed completion of a solar project. And last...more

Latham & Watkins LLP

Penalty Clauses in Project Finance Transactions

Latham & Watkins LLP on

A number of recent English court decisions have recast the test for determining when a contractual provision may be unenforceable under English law as a “penalty clause”. The rule against penalty clauses is particularly...more

King & Spalding

Amending FIDIC Provisions on Delay Liquidated Damages: a Case Note on J Murphy & Sons Ltd v Beckton Energy Ltd [2016] EWHC 607...

King & Spalding on

The perfect construction project is completed on time, on budget, and in accordance with the Employer’s specification and/or performance requirements. In reality, delays frequently occur and with such delay the potential for...more

King & Spalding

UK Supreme Court clarifies the law on penalties Cavendish Square Holding BC v Talal El Makdessi [2015] UKSC 67

King & Spalding on

The UK Supreme Court has recently clarified the English (and Scottish) law on penalties in the (joint) appeals in Cavendish Square Holding BV v Talal El Makdessi (“Cavendish”) and ParkingEye Ltd v Beavis [2015] UKSC 67...more

King & Spalding

Consequential Loss in Energy Commodity Contracts

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Energy commodity contracts can be of significant monetary value, and their breach may expose the defaulting counterparty to significant liabilities for contractual damages. In considering potential liabilities, contracting...more

King & Spalding

Energy Newsletter - November 2014

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In This Issue: - First AIPN Model Contract for Unconventional Resource Operations - A Cautionary Tale: English Courts Further Depart from a Traditional Approach to Liquidated Damages in Unaoil v Leighton ...more

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