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View the related practice notes about Unliquidated damages

Contractual damages—general principles

This Practice Note considers the general principles of recovering damages for contractual breach, starting with the compensatory function of damages and the different kinds of damages for pecuniary and non-pecuniary losses, as well as nominal damages, damages under the Sale of Goods Act 1979 (SGA 1979), default damages clauses, contractual mechanisms for dealing with breach and interest on damages.Per Baron Parke in Robinson v Harman, a party who suffers loss as a result of breach of contract is entitled:‘To be placed in the same situation, with respect to damages, as if the contract had been performed.’Compensatory function of damages for breach of contractThe normal function of damages for breach of contract is the same as that in tort, namely, compensatory (see, eg British Westinghouse v Underground Electric Rlys). The aim being to compensate the true loss suffered by the innocent party and place them in the same position, so far as money can do it, as if the contract had been performed. To this extent (and while there are exceptions,...

US Chapter 11 proceedings

US Chapter 11 proceedings Updated for the UK by the Practical Guidance Team. A debtor-in-possession (DIP) must operate the business, serve as a fiduciary or trustee for the bankruptcy estate, and propose a plan of reorganisation that is acceptable to creditors. The DIP's management, board of directors, and retained bankruptcy counsel assists with these functions. Counsel should note that references in the Bankruptcy Code to actions taken by the trustee apply to the DIP as long as the debtor remains in control of its business and a trustee is not appointed to manage the debtor's estate. Generally, the filing of a voluntary Chapter 11 bankruptcy case follows a similar course of events. This Practice Note summarises and provides a general overview of the below listed Chapter 11 events: • Filing Chapter 11 bankruptcy • US trustee and creditors' committee • Automatic stay • First day motions in bankruptcy • DIP financing • Cash collateral • Professional retention in bankruptcy • Fee applications • Proofs of claim •...

View the related q&as about Unliquidated damages

Is it possible to claim for direct losses for delay in addition to liquidated damages where the contract does not state that liquidated damages are the sole remedy for delay?

Is it possible to claim for direct losses for delay in addition to liquidated damages where the contract does not state that liquidated damages are the sole remedy for delay? The general position is that, where parties have provided that liquidated damages (LADs or LDs) will be payable by the contractor if completion is delayed, this will be the employer’s sole remedy for such delay. In this situation, the employer will therefore not be able to seek general (ie unliquidated) damages from the courts in addition to, or instead of, claiming LADs—whether or not the parties have used express ‘sole remedy’ wording. This is illustrated particularly in cases where parties have inserted ‘nil’ or ‘N/A’ as the amount of LADs payable. For example, in Temloc v Errill Properties, the parties had inserted ‘nil’ in the contract particulars against the amount of LADs payable. The court held that the effect of this was that LADs were still the employer's sole remedy for delay damages under the contract,...

Can a residential landlord charge rent while issues with the property are being rectified, and the tenant is being housed elsewhere in a hotel while works are undertaken?

Can a residential landlord charge rent while issues with the property are being rectified, and the tenant is being housed elsewhere in a hotel while works are undertaken? Landlord’s repairing obligations The landlord will only have repairing obligations to the extent of any express obligations in the tenancy, subject to a few exceptions, including: • an obligation to ensure any retained premises are in such condition as to not cause damage to the tenant • an obligation to ensure demised premises being constructed are completed in a good and workmanlike manner using proper materials so as to be reasonably fit for human habitation • a duty, if the landlord designed or built the premises, to take reasonable care to ensure the building is free from any defect likely to cause injury • where a term is implied in order to give business efficacy to the transaction. However, a term will not be implied if there is a comprehensive code dealing with repairs, etc • repairing covenants implied by statute, including:...

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Construction weekly highlights—28 March 2024

This week's edition of Construction weekly highlights includes the government’s response to its consultation on the draft Procurement Act 2023 (PA 2023) regulations and publication of guidance by the Cabinet Office on those regulations, a case from the Outer House, Court of Session (CSOH) in which it was held that an adjudicator had erred in allowing new evidence to be presented on a matter resolved in a previous adjudication (Engenda v Petroineos), a case in which the Technology and Construction Court (TCC) considered a claim for defects in a residential property and issues arising under the Defective Premises Act 1972 (DPA 1972) (Vainker v Marbank), and a consultation launched by the Department for Levelling Up, Housing and Communities (DLUHC) on the qualifying criteria for joint leasehold owners in relation to the Building Safety Act 2022 (BSA 2022).

Adjudicator erred in allowing new evidence to be considered on an issue raised in previous adjudication (Engenda v Petroineos)

Construction analysis: The Outer House, Court of Session (CSOH) found that an adjudicator had erred when, having considered in a previous adjudication that a party had not proven the amount of unliquidated damages owed to it due to late completion of the works, that with new evidence in a subsequent adjudication it was then entitled to prove and had proved that it had suffered damages in relation to the disputed sum. The decision is a rare example of the courts finding that an adjudicator had erred and did not have the appropriate jurisdiction.

View the latest UK Parliament Acts documents on Unliquidated damages

382 "Bankruptcy debt"[, “liability”]

(1)     “Bankruptcy debt”, in relation to a bankrupt, means (subject to the next subsection) any of the following—(a)     any debt or liability to which he is subject at the commencement of the bankruptcy,(b)     any debt or liability to which he may become subject after the commencement of the bankruptcy (including after his discharge from bankruptcy) by reason of any obligation incurred before the commencement of the bankruptcy,(c)     any amount specified in pursuance of section 39(3)(c) of the Powers of Criminal Courts Act 1973 in any criminal bankruptcy order made against him before the commencement