Exciting times for commercial lawyers advising on liquidated damages clauses. The Supreme Court is to consider the rule against penalties for the first time since Lord Dunedin did so, one hundred years ago, in Dunlop Pneumatic Tyre v New Garage Motor. Due to the way in which the rule has developed over the years, contractual parties negotiating liquidated damages clauses may struggle to understand their position in relation to the law on penalties. Hopefully, the Supreme Court will take advantage of this opportunity to deliver much needed guidance. Continue reading

Spotlight on the rule against penalties

Compulsory mediation: sooner rather than later?
In the third part of our recent interview with Sir Vivian Ramsey, Sir Vivian said he thought it would take some time for compulsory mediation to be introduced in this country. However, it seems that the President of the Supreme Court, Lord Neuberger, may think differently, at least in relation to smaller civil disputes. At the recent Civil Mediation Council annual conference which I attended, he expressed some interesting views on the future of mediation in his keynote address. Continue reading

Part 36: one month (or so) on
As everybody should know by now, a revised version of Part 36 came into force on 6 April 2015. The new rules apply to all Part 36 offers made on or after 6 April 2015. However, even Part 36 offers made before that date may be affected, as new CPR 36.3 (definitions), CPR 36.11 (acceptance of a Part 36 offer), CPR 36.12 (acceptance of a Part 36 offer in a split trial case) and CPR 36.16 (restriction on disclosure of a Part 36 offer) apply to a Part 36 offer made before 6 April, provided a trial of any part of the claim or any issue in it starts on or after 6 April (rule 18, Transitional Provision, Civil Procedure (Amendment No 8) Rules 2014 (SI 2014/3299)). Continue reading