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For the first time in over a century, the Supreme Court has reviewed the law on penalty clauses. In the judgment handed down on 4 November 2015, Cavendish and Parking Eye having been heard together, the court has formulated the ‘true test’ for determining whether such a clause is enforceable in all contracts, looking at it from both ends of the spectrum – commercial and consumer. In addition, important guidance is given about the tests of ‘good faith’ and ‘significant imbalance of rights’ under the Unfair Terms in Consumer Contracts Regulations 1999.
In this seminar, John de Waal QC, David Lewis and Ryan Hocking, who appeared for Mr Beavis in the ParkingEye case [2015] UKSC 67, will explain the effect of the decision, the potential scope the rule, and discuss areas of uncertainty and the kind of issues likely to arise in commercial litigation. The matters discussed at the seminar are relevant to anyone engaged in commercial litigation.
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