In a decision late last year, the Court of Appeal considered the interpretation of a provision which purported to cap the liability of a provider of IT systems for defaults occurring at different stages of the contract. In contrast to the High Court, which had held the clause imposed a single overall cap which varied depending on the point at which the first default occurred, the Court of Appeal held that there were two separate caps for defaults occurring within the two stages: Royal Devon and Exeter NHS Foundation Trust v Atos IT Services UK Ltd [2017] EWCA Civ 2196.

James Farrell and Sophie Jones have published an article in the March/April 2018 edition of the Procurement & Outsourcing Journal in which they explore the lessons to be learned, particularly as to the importance of using clear and precise drafting for provisions limiting liability under a contract. Click here to download a copy.