Regus (UK) Ltd v Epcot Solutions Ltd

Regus (UK) Ltd v Epcot Solutions Ltd

Regus was negligent in failing to repair the air conditioning, breaching its contractual obligation to provide adequate services. The exclusion clause relied upon by Regus was unreasonable under the Unfair Contract Terms Act 1977 and is of no effect, so Epcot is entitled to recover damages for losses suffered due to the air conditioning failures. However, Epcot failed to prove misrepresentation or entitlement to relocation and marketing costs. The quantum of damages is to be determined, and Regus's right to suspend services depends on the netting off of legitimate counterclaims.

Parties
Claimant: Regus (UK) Limited; Defendant: Epcot Solutions Limited
Jurisdiction
England and Wales
Judgment Date
04 May 2007
Procedural Posture
Commercial Claim and Counterclaim / Judgment on Liability, Directions for Quantum
Outcome
Liability judgment for Epcot on breach of contract; misrepresentation and certain damages claims dismissed; quantum of damages to be determined.
Legal Topics
Breach of Contract, Misrepresentation, Exclusion Clauses, Unfair Contract Terms Act 1977, Damages, Serviced Office Agreements
Contract Law Commercial Law Breach of Contract Misrepresentation Exclusion Clauses Unfair Contract Terms Act 1977 Damages Serviced Office Agreements

Case Brief

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Parties

Regus (UK) Limited

Claimant

Epcot Solutions Limited

Defendant

Procedural Posture

Commercial Claim and Counterclaim / Judgment on Liability, Directions for Quantum

Legal Issues

  1. 1 Whether Regus was liable for breach of contract for failing to provide adequate air conditioning
  2. 2 Whether Epcot was entitled to damages for misrepresentation and/or breach of contract
  3. 3 Whether Regus could rely on its exclusion clause under the Unfair Contract Terms Act 1977

Ratio Decidendi

Regus was negligent in failing to repair the air conditioning, breaching its contractual obligation to provide adequate services. The exclusion clause relied upon by Regus was unreasonable under the Unfair Contract Terms Act 1977 and is of no effect, so Epcot is entitled to recover damages for losses suffered due to the air conditioning failures. However, Epcot failed to prove misrepresentation or entitlement to relocation and marketing costs. The quantum of damages is to be determined, and Regus's right to suspend services depends on the netting off of legitimate counterclaims.

Court Disposition

Liability judgment for Epcot on breach of contract; misrepresentation and certain damages claims dismissed; quantum of damages to be determined.

Orders

  • Epcot entitled to damages for breach of contract due to defective air conditioning, subject to assessment of quantum.
  • Epcot's claims for misrepresentation, relocation, and marketing costs dismissed.