University of Wales v London College of Business Ltd

University of Wales v London College of Business Ltd

The College's damages for breach of the Validation Agreement are limited to lost profits from students who would have enrolled in April and September 2012 but for the University's breach. The Court, after scrutinising evidence, finds the College's projections unpersuasive and bases the assessment on historic intake, contemporaneous estimates, and the adverse impact of CAS allocation and Tier 4 licence suspension. The Court determines reasonable intake numbers, average fees (with discounts), drop-out rates, and incremental teaching costs, resulting in a modest damages award.

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
Civil / Assessment of Damages Following Prior Liability Judgment
Outcome
Damages awarded on the counterclaim for breach of contract, quantum to be calculated per Court's findings.
Legal Topics
Damages for Breach of Contract, Assessment of Lost Profits, Validation Agreements in Education, Student Visa Sponsorship
Contract Law Damages for Breach of Contract Assessment of Lost Profits Validation Agreements in Education Student Visa Sponsorship

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Parties

University of Wales

Claimant/part 20 Defendant

London College of Business Limited

Defendant/part 20 Claimant

Procedural Posture

Civil / Assessment of Damages Following Prior Liability Judgment

Legal Issues

  1. 1 What is the quantum of damages for breach of the Validation Agreement by wrongful suspension of enrolments?
  2. 2 How many students would have enrolled but for the breach?
  3. 3 What fees would those students have paid?

Ratio Decidendi

The College's damages for breach of the Validation Agreement are limited to lost profits from students who would have enrolled in April and September 2012 but for the University's breach. The Court, after scrutinising evidence, finds the College's projections unpersuasive and bases the assessment on historic intake, contemporaneous estimates, and the adverse impact of CAS allocation and Tier 4 licence suspension. The Court determines reasonable intake numbers, average fees (with discounts), drop-out rates, and incremental teaching costs, resulting in a modest damages award.

Court Disposition

Damages awarded on the counterclaim for breach of contract, quantum to be calculated per Court's findings.

Orders

  • Damages to be calculated based on Court's findings regarding student intake, fees, drop-out rates, and incremental teaching costs.
  • Parties to finalise calculations and quantify damages accordingly.