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 prove on the balance of probabilities that it would have achieved the claimed student intakes and profits in April and September 2012. The evidence did not support the scale of projected growth, and the College's loss of Tier 4 sponsorship, lack of credible market evidence, and absence of actual applications or enquiries for new courses undermined its case. Damages are to be assessed conservatively, based on realistic estimates of likely student numbers and profits, not on speculative projections.

Citation
[2016] EWHC 888 (QB)
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 / Assessment of Damages Following Liability Judgment
Outcome
Damages awarded to the College for breach of contract, but on a significantly reduced basis from the amounts claimed.
Legal Topics
Damages for Breach of Contract, Assessment of Lost Profits, Limitation of Damages Clauses
Contract Law Commercial Law Damages for Breach of Contract Assessment of Lost Profits Limitation of Damages Clauses

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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 / Assessment of Damages Following Liability Judgment

Legal Issues

  1. 1 What is the appropriate measure of damages for the College's loss of profits resulting from the University's breach of the Validation Agreement?
  2. 2 How many additional students would have been enrolled but for the breach?
  3. 3 What fees would those students have paid?

Ratio Decidendi

The College failed to prove on the balance of probabilities that it would have achieved the claimed student intakes and profits in April and September 2012. The evidence did not support the scale of projected growth, and the College's loss of Tier 4 sponsorship, lack of credible market evidence, and absence of actual applications or enquiries for new courses undermined its case. Damages are to be assessed conservatively, based on realistic estimates of likely student numbers and profits, not on speculative projections.

Court Disposition

Damages awarded to the College for breach of contract, but on a significantly reduced basis from the amounts claimed.

Orders

  • Damages to be calculated based on realistic estimates of additional students and profits, not on speculative projections.
  • The parties to calculate the quantum in accordance with the court's findings.