British Sugar Plc v Nei Power Projects Ltd & Anor [1997] EWCA Civ 2438 (8th October, 1997)

British Sugar Plc v Nei Power Projects Ltd & Anor [1997] EWCA Civ 2438 (8th October, 1997)

The limitation on liability for 'consequential loss' in the contract does not apply to losses that flow directly and naturally from the breach; it only limits liability for losses arising from special circumstances beyond the ordinary course of events.

Citation
[1997] EWCA Civ 2438
Parties
Respondent/plaintiff: British Sugar Plc; Appellant/defendant: NEI Power Projects Ltd & Anor
Jurisdiction
England and Wales
Procedural Posture
Appeal (civil) / Appeal From Queen's Bench Division on Preliminary Issue
Outcome
Appeal dismissed
Legal Topics
Limitation of Liability, Consequential Loss, Interpretation of Exclusion Clauses, Damages for Breach of Contract
Contract Law Commercial Law Limitation of Liability Consequential Loss Interpretation of Exclusion Clauses Damages for Breach of Contract

Case Brief

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Parties

British Sugar Plc

Respondent/plaintiff

NEI Power Projects Ltd & Anor

Appellant/defendant

Procedural Posture

Appeal (civil) / Appeal From Queen's Bench Division on Preliminary Issue

Legal Issues

  1. 1 Whether the limitation on liability for 'consequential loss' in the contract applies to losses flowing directly and naturally from a breach
  2. 2 Proper construction of 'consequential loss' in commercial contracts

Ratio Decidendi

The limitation on liability for 'consequential loss' in the contract does not apply to losses that flow directly and naturally from the breach; it only limits liability for losses arising from special circumstances beyond the ordinary course of events.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs