University of Wales v London College of Business Ltd [2016] EWHC 888 (QB) (21 April 2016)

University of Wales v London College of Business Ltd [2016] EWHC 888 (QB) (21 April 2016)

The College failed to provide cogent evidence that, but for the University's breach, it would have achieved the projected student intakes and profits for April and September 2012. The projections were not supported by historical performance, credible market evidence, or reliable expert testimony. The College's claim for substantial lost profits was therefore not established on the balance of probabilities, and damages must be assessed on a more conservative basis reflecting the actual evidence of likely student numbers and income.

Citation
[2016] EWHC 888
Parties
Claimant/part 20 Defendant: University of Wales; Defendant/part 20 Claimant: London College of Business Limited
Jurisdiction
England and Wales
Judgment Date
21 April 2016
Procedural Posture
Commercial Contract Damages / Assessment of Damages Following Liability Judgment
Outcome
Damages awarded to the College for breach of contract, but on a reduced basis reflecting the lack of evidence for the claimed student numbers and profits.
Legal Topics
Damages for Breach of Contract, Assessment of Lost Profits, Validation Agreements, Higher Education Sponsorship and Student Visas
Contract Law Higher Education Law Damages for Breach of Contract Assessment of Lost Profits Validation Agreements Higher Education Sponsorship and Student Visas

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Parties

University of Wales

Claimant/part 20 Defendant

London College of Business Limited

Defendant/part 20 Claimant

Procedural Posture

Commercial Contract Damages / Assessment of Damages Following Liability Judgment

Legal Issues

  1. 1 What is the appropriate quantum of damages for the College's lost profits due to the University's breach of the Validation Agreement by suspending enrolments in 2012?
  2. 2 How many additional students would have enrolled but for the breach?
  3. 3 What fees would those students have paid?

Ratio Decidendi

The College failed to provide cogent evidence that, but for the University's breach, it would have achieved the projected student intakes and profits for April and September 2012. The projections were not supported by historical performance, credible market evidence, or reliable expert testimony. The College's claim for substantial lost profits was therefore not established on the balance of probabilities, and damages must be assessed on a more conservative basis reflecting the actual evidence of likely student numbers and income.

Court Disposition

Damages awarded to the College for breach of contract, but on a reduced basis reflecting the lack of evidence for the claimed student numbers and profits.

Orders

  • Damages to be calculated based on the court's findings as to likely student numbers, fees, and costs, not on the College's projections.