Category: contracts

The Supreme Court sanctions the use of adjudication in the insolvency context: Bresco Electrical Services Ltd v Michael J Lonsdale (Electrical) Ltd [2020] UKSC 25 – 3 Hare Court

Posted June 23rd, 2020 in construction industry, contracts, dispute resolution, insolvency, news, set-off by sally

‘The Supreme Court has given judgment in what is being hailed as a landmark case in the construction and insolvency spheres. The decision has not only eliminated any doubt that there is jurisdiction for an insolvent company to adjudicate against a respondent with a potential cross-claim, but it has also endorsed the use of adjudication as a helpful tool for liquidators.’

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3 Hare Court, 22nd June 2020

Source: www.3harecourt.com

Bresco Electrical Services Ltd (in liquidation) v Michael J Lonsdale (Electrical) Ltd [2020] USC 25, or ‘‘kicking the door wide open’’ – 3PB

Posted June 23rd, 2020 in construction industry, contracts, dispute resolution, insolvency, news, set-off by sally

‘Lord Justice Coulson’s judgment included the proposition that an insolvent Company could only adjudicate a dispute with a creditor in circumstances of mutual debts in “exceptional circumstances”. Subsequent caselaw has explored the extent of these “exceptional circumstances”.’

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3PB, 18th June 2020

Source: www.3pb.co.uk

De Sena v Notaro [2020] EWHC 1031 (Ch): The family, the demerger and the expert who wasn’t an expert – Hailsham Chambers

Posted June 18th, 2020 in contracts, fiduciary duty, mergers, negligence, news, shareholders, undue influence by sally

‘The case arose out of a corporate demerger which took place in relation to a family owned company, S Notaro Holdings (“Holdings”), on 28 April 2011. The First Claimant (C1), and the First Defendant (D1) were siblings. Prior to the demerger, they were both shareholders in and directors of Holdings. Neither were majority shareholders. D1 held 43.75% of the shares in Holdings, and C1 held 31.25%. In the demerger, C1 gave up her shares in Holdings in exchange for some assets of Holdings or its subsidiaries being transferred to the Second Claimant (C2), a company formed for that purpose, owned and controlled by C1.’

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Hailsham Chambers, June 2020

Source: www.hailshamchambers.com

Government facing legal challenge over urgent award of £108m PPE contract – Local Government Lawyer

Posted June 18th, 2020 in competition, contracts, coronavirus, judicial review, news, protective equipment, public procurement by sally

‘The Good Law Project will today [15 June] launch judicial review proceedings over the Government’s award of an £108m contract to a pest control company for the supply of PPE.’

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Local Government Lawyer, 15th June 2020

Source: www.localgovernmentlawyer.co.uk

South Shields Football Club 1888 Limited v The Football Association Limited – Blackstone Chambers

Posted June 16th, 2020 in consultations, contracts, coronavirus, dispute resolution, news, sport, ultra vires by sally

‘A legal challenge to The FA’s decision to end the 2019/20 football season in Steps 3-7 of the English football National League System without promotion or relegation on account of the COVID-19 pandemic has been dismissed. The arbitral panel, chaired by Lord Dyson with Charles Flint QC and Andrew Green QC, rejected the challenge brought by South Shields FC, a club sitting in an automatic promotion position at the point of cessation of the season.’

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Blackstone Chambers, 11th June 2020

Source: www.blackstonechambers.com

Ezair v. Conn [2020] EWCA (Civ) 687 – Falcon Chambers

Posted June 16th, 2020 in constructive trusts, contracts, news, sale of land by sally

‘In Ezair v. Conn [2020] EWCA (Civ) 687, the Court of Appeal has struck a blow in favour of established doctrine, in a case involving uncompleted contracts for the sale and sub-sale of land.’

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Falcon Chambers, 4th June 2020

Source: www.falcon-chambers.com

Termination of a Code Agreement by Operators – Falcon Chambers

Posted June 15th, 2020 in chambers articles, codes of practice, contracts, electronic mail, Law Commission, news, telecommunications by sally

‘In this article we intend to examine the continuation of a Code agreement falling within the terms of the Electronic Communications Code (“the Code”) and the ability of an operator to terminate it permanently, such that the agreement may be treated as at an ended at the specified break date without any ongoing continuation of the operator’s contractual liability. We shall also consider the issue of renewal following termination.’

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Falcon Chambers, June 2020

Source: www.falcon-chambers.com

Frustrated by COVID-19? Tell that to your contract – No. 5 Chambers

Posted June 11th, 2020 in chambers articles, contracts, coronavirus, news by sally

‘The law of frustration has reared its head at some memorable moments in British history: King Edward VII’s cancelled coronation; the First World War; the Second World War; and Brexit. Will the COVID-19 pandemic join this list?’

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No. 5 Chambers, 3rd June 2020

Source: www.no5.com

Limitation: When Does Time Start to Run? – Hailsham Chambers

Posted June 11th, 2020 in contracts, disabled persons, insurance, limitations, news, restitution by sally

‘The key phrase in most but not all of the sections of the Limitation Act 1980 is the accrual of the “cause of action”. Time runs from the accrual of the cause of action.’

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Hailsham Chambers, June 2020

Source: www.hailshamchambers.com

Gregor Fisken Limited v Mr Bernard Carl – Monckton Chambers

Posted June 11th, 2020 in agency, contracts, news, sale of goods by sally

‘The widely reported case of Gregor Fisken Limited v Mr Bernard Carl [2020] EWHC 1385 (Comm) involved one of the world’s rarest and most expensive cars, a $44m Ferrari 250 GTO Series 1 coupé, and its lost (and found) original gearbox. After a week-long trial in the High Court, it was held that the defendant seller was acting in breach of contract in failing to deliver the GTO’s original gearbox to the claimant buyer. The Court made an order for specific performance, requiring the seller to secure the delivery of the original gearbox to the buyer.’

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Monckton Chambers, June 2020

Source: www.monckton.com

Spending watchdog warns public bodies on challenge of managing end of PFI contracts as disputes loom – Local Government Lawyer

Posted June 8th, 2020 in auditors, contracts, dispute resolution, local government, news, private finance initiative by sally

‘More than a third of public bodies expect to have formal disputes as PFI contracts come to an end, the National Audit Office has found.’

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Local Government Lawyer, 5th June 2020

Source: www.localgovernmentlawyer.co.uk

To complete or not to complete? Notices to Complete and Specific Performance – Falcon Chambers

Posted June 5th, 2020 in chambers articles, contracts, enforcement, news, sale of land by sally

‘Once the parties to a contract for the sale and purchase of land (or for the grant and acceptance of a lease) become contractually bound, then, other things being equal, neither of them should be able to back out – at least, not without some default of the other party to exploit. Of course, some such contracts are conditional, and the parties do not necessarily become unconditionally bound until some later date, if at all. But when the parties do become unconditionally bound, one or the other of them may ask the question: how can I force the reluctant party to complete? Or, looking at the problem from the other end: when do I have to complete? Can I be forced to complete?’

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Falcon Chambers, May 2020

Source: www.falcon-chambers.com

Sale and Development Agreements: Obligations to Use Endeavours – Falcon Chambers

Posted June 5th, 2020 in chambers articles, contracts, coronavirus, news, sale of land by sally

‘At the time of writing, the UK remains subject to stringent and extensive measures which have been enacted by Parliament in response to the Covid19 pandemic. Although there has been some relaxation since the “lockdown” was first introduced in mid-March 2020, large parts of the economy remain on hold. This has had and will continue, for some time, to have an effect on the ability and desire of parties to contracts for the sale and/or development of land to perform their obligations. It will also affect the extent to which transactions of this sort continue to be entered into and the terms of sale and development agreements may well need to adapt to the changing landscape.’

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Falcon Chambers, May 2020

Source: www.falcon-chambers.com

Top judges call for ADR “acceleration” in face of Covid-19 – Litigation Futures

Posted June 5th, 2020 in contracts, coronavirus, dispute resolution, judges, news by sally

A group of senior former judges and legal academics has called for an acceleration in the take-up of alternative dispute resolution (ADR) in the face of commercial contract disputes arising from Covid-19.

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Litigation Futures, 4th June 2020

Source: www.litigationfutures.com

UPDATE: Halliburton v Vedanta: Performance Bonds and COVID-19 – Atkin Chambers

Posted June 4th, 2020 in contracts, coronavirus, damages, India, injunctions, news by sally

‘Shourav Lahiri revisits the case of Halliburton v Vedanta where a differently constituted bench of the Delhi High Court has just reversed its previous decision and discharged its injunction against the call on performance bonds. This update also examines some related issues that could arise as a consequence of COVID-19.’

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Atkin Chambers, 2nd June 2020

Source: www.atkinchambers.com

Covid-19 and its effect on contractual obligations – Devereux Chambers

Posted June 2nd, 2020 in chambers articles, contracts, coronavirus, news by sally

‘The simple effect of the Covid-19 lockdown announced on 23 March 2020 was that life, and business, changed for everyone. People and organisations could no longer do things they had planned or intended to do, and in many instances, difficult decisions had to be made, and some were made hastily, without thinking through the ramifications. As time goes on, many will be faced with the question of whether steps they took, or didn’t take, mean that they are in breach of a contractual obligation; on the other side of the coin, others will be wondering whether they have a remedy for not having received goods or services they expected to on time, or at all.’

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Devereux Chambers, 15th May 2020

Source: www.devereuxchambers.co.uk

Watership Down author’s estate wins back all rights to classic novel – The Guardian

Posted June 2nd, 2020 in contracts, copyright, damages, film industry, media, news by sally

‘In a case at London’s high court, Richard Adams’ estate won a longstanding claim against Martin Rosen, director of the 1978 animation.’

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The Guardian, 1st June 2020

Source: www.theguardian.com

Travel and Holiday Claims amid a Global Lockdown – Henderson Chambers

Posted May 29th, 2020 in airlines, contracts, coronavirus, EC law, holidays, hotels, news, regulations, transport by sally

‘The world-wide lockdown in response to the Covid-19 pandemic will have an unprecedented financial impact, not only on businesses in all areas of the economy but also on consumers. Public gatherings are banned or strictly limited and events have been cancelled or postponed. Future travel plans remain uncertain, with the borders of many other countries remaining closed to travellers from the UK and strict 14-day quarantine measures set to be imposed on those entering the UK from the end of May. Many companies are refusing or delaying offering refunds to affected consumers, who may have to resort to litigation to protect their rights. This alerter provides a broad overview of several affected areas, including package holidays, travel, holiday accommodation and events.’

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Henderson Chambers, 19th May 2020

Source: www.hendersonchambers.co.uk

School fees in times of Covid: Tips for schools and parents – Monckton Chambers

Posted May 29th, 2020 in contracts, coronavirus, education, fees, news, school children by sally

‘The lockdown has posed inordinate challenges for education – with schools and universities adjusting to remote learning on extremely short notice. For private schools and universities, there have been tough choices between furloughing staff, deciding which lessons and courses to continue and justifying the level of fees, when many parents are in financial difficulty themselves. Boarding schools and universities have additional problems as they have a high level of sunk costs in infrastructure for overseas students that, at present, are not allowed to travel.’

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Monckton Chambers, 19th May 2020

Source: www.monckton.com

The death of “forensic prestidigitation” in construing commercial contracts? Towergate Financial (Group) Ltd and others v Clark and others – Hardwicke Chambers

Posted May 26th, 2020 in appeals, chambers articles, contracts, indemnities, interpretation, news by sally

‘Judgment in Towergate Financial (Group) Ltd and others v Clark and others was handed down on 24 April 2020 in this interesting case that turned upon the correct construction of a notice clause in a share purchase agreement (SPA).’

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Hardwicke Chambers, 13th May 2020

Source: hardwicke.co.uk