IPM Energy Trading Ltd v Carillion Energy Services Ltd

IPM Energy Trading Ltd v Carillion Energy Services Ltd

The sums claimed by the Claimant are not recoverable from the Defendant because the payments to Teesside were not at market rate and do not reflect the true cost caused by the Defendant's breach, and the payments to Acrobat were for mitigation of fines, which are expressly excluded from recovery under the contract. The Defendant's breach was not a deliberate refusal to perform.

Parties
Claimant: IPM Energy Trading Ltd; Defendant: Carillion Energy Services Ltd
Jurisdiction
England and Wales
Judgment Date
13 June 2017
Procedural Posture
Commercial Contract Dispute / Final Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Breach of Contract, Damages, Limitation of Liability, Mitigation of Loss
Contract Law Breach of Contract Damages Limitation of Liability Mitigation of Loss

Case Brief

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Parties

IPM Energy Trading Ltd

Claimant

Carillion Energy Services Ltd

Defendant

Procedural Posture

Commercial Contract Dispute / Final Judgment After Trial

Legal Issues

  1. 1 Whether the sums paid by the Claimant to Teesside and Acrobat are recoverable from the Defendant under the contract
  2. 2 Whether the Defendant's breach entitles the Claimant to damages for mitigation measures
  3. 3 Whether the Defendant deliberately refused to perform its contractual obligations

Ratio Decidendi

The sums claimed by the Claimant are not recoverable from the Defendant because the payments to Teesside were not at market rate and do not reflect the true cost caused by the Defendant's breach, and the payments to Acrobat were for mitigation of fines, which are expressly excluded from recovery under the contract. The Defendant's breach was not a deliberate refusal to perform.

Court Disposition

Claim dismissed