Regus (UK) Ltd v Epcot Solutions Ltd [2007] EWHC 938 (Comm) (04 May 2007)

Regus (UK) Ltd v Epcot Solutions Ltd [2007] EWHC 938 (Comm) (04 May 2007)

Regus was in breach of contract for failing to provide adequate air conditioning, and its exclusion clause was unreasonable and void under the Unfair Contract Terms Act 1977 insofar as it deprived Epcot of any remedy for such breach. Epcot is entitled to damages for the breach, but not for loss of profits or consequential losses excluded by a reasonable clause. Epcot's claims for misrepresentation and for relocation/marketing costs failed on the facts. The quantum of damages is to be determined at a later hearing.

Citation
[2007] EWHC 938 (Comm)
Parties
Claimant: Regus (UK) Limited; Defendant: Epcot Solutions Limited
Jurisdiction
England and Wales
Judgment Date
04 May 2007
Procedural Posture
Commercial Claim and Counterclaim / Liability Judgment; Quantum to Be Determined
Outcome
Liability judgment for Epcot on breach of contract; misrepresentation and other claims dismissed; quantum of damages to be determined.
Legal Topics
Unfair Contract Terms, Exclusion Clauses, Breach of Contract, Misrepresentation, Damages, Serviced Office Agreements
Contract Law Commercial Law Unfair Contract Terms Exclusion Clauses Breach of Contract Misrepresentation Damages Serviced Office Agreements

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Parties

Regus (UK) Limited

Claimant

Epcot Solutions Limited

Defendant

Procedural Posture

Commercial Claim and Counterclaim / Liability Judgment; Quantum to Be Determined

Legal Issues

  1. 1 Whether Regus was liable for breach of contract due to defective air conditioning
  2. 2 Whether exclusion clause in Regus' standard terms was reasonable under the Unfair Contract Terms Act 1977
  3. 3 Whether Epcot was entitled to damages for loss of profits, relocation costs, and other consequential losses

Ratio Decidendi

Regus was in breach of contract for failing to provide adequate air conditioning, and its exclusion clause was unreasonable and void under the Unfair Contract Terms Act 1977 insofar as it deprived Epcot of any remedy for such breach. Epcot is entitled to damages for the breach, but not for loss of profits or consequential losses excluded by a reasonable clause. Epcot's claims for misrepresentation and for relocation/marketing costs failed on the facts. The quantum of damages is to be determined at a later hearing.

Court Disposition

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

Orders

  • Regus' exclusion clause declared void under UCTA 1977 as unreasonable in this context.
  • Epcot entitled to damages for breach of contract due to defective air conditioning, quantum to be assessed.