Article published on the new rule on penalties under English law

Much interest has been generated by the Supreme Court's decision in Cavendish Square Holding BV v Talal El Makdessi; ParkingEye Limited v Beavis [2015] UKSC 67, which introduced a new test for when a contractual provision will be considered penal and therefore unenforceable. David Nitek and Maura McIntosh have published an article which considers the new test and its implications for commercial parties: "The … Read more

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 rule in English law has been misunderstood and that as a result the rule has been applied in many situations where it is both unnecessary and unjust: Cavendish Square Holding BV … Read more

Contractual damages: Supreme Court confirms overriding compensatory principle in case of one-off sale

In a recent judgment, the Supreme Court has confirmed that the overriding compensatory principle applies in the case of an anticipatory breach of a contract for a one-off sale. This means that events occurring after the date of breach can be taken into account in considering whether the claimant has suffered any loss. In the present case, the court concluded that the … Read more

Court of Appeal restricts scope for a defendant to reduce its liability for unjust enrichment based on the subjective value of its enrichment

The Court of Appeal has provided guidance on how to value a defendant’s benefit in a claim for unjust enrichment: Littlewoods Limited and others v The Commissioners for Her Majesty’s Revenue and Customs [2015] EWCA Civ 515. A claimant in unjust enrichment does not claim damages for the loss it has suffered, but restitution of … Read more