The approach to interpreting liquidated damages clauses. The liquidated damages clause here was in a familiar form, providing for liquidated damages to be paid for each day of delay by the contractor ‘from the due date for delivery up to the date [the employer] accepts such work.’ The issue was whether liquidated damages were payable under this clause in respect of work which had not been completed before the contract was terminated. Issue 2 involves the interpretation of an exception to a cap on the contractor’s liability for damages when the liability results from negligence. The question is whether ‘negligence’ in the exception means the tort of negligence or whether it includes breach of the contractual duty of skill and care. Issue 3 is whether liquidated damages are subject to a cap in the contract on the amount of recoverable damages.
Lord Hodge (Deputy President), Lady Arden, Lord Sales, Lord Leggatt, Lord Burrows
[2021] UKSC 29, [2021] AC 1148, [2021] WLR(D) 411, [2021] 3 WLR 521
Bailii, Bailii Press Summary, Bailii issues and Facts, WLRD
England and Wales
Contract, Damages
Updated: 21 December 2021; Ref: scu.666005