Kudos Catering (UK) Ltd v Manchester Central Convention Complex Ltd

Kudos Catering (UK) Ltd v Manchester Central Convention Complex Ltd

Clause 18.6, properly construed in context, does not exclude liability for loss of profits arising from repudiatory breach of contract; its scope is limited to losses arising from defective performance, not refusal to perform.

Parties
Appellant: Kudos Catering (UK) Limited; Respondent: Manchester Central Convention Complex Limited
Jurisdiction
England and Wales
Judgment Date
07 February 2013
Procedural Posture
Civil Appeal / Appeal From High Court Preliminary Issue Determination
Outcome
Appeal allowed
Legal Topics
Exclusion Clauses, Commercial Contracts, Contractual Interpretation, Remedies for Breach
Contract Law Exclusion Clauses Commercial Contracts Contractual Interpretation Remedies for Breach

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Parties

Kudos Catering (UK) Limited

Appellant

Manchester Central Convention Complex Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Preliminary Issue Determination

Legal Issues

  1. 1 Proper construction of Clause 18.6 of the Agreement
  2. 2 Whether liability for loss of profits is excluded in event of repudiatory breach

Ratio Decidendi

Clause 18.6, properly construed in context, does not exclude liability for loss of profits arising from repudiatory breach of contract; its scope is limited to losses arising from defective performance, not refusal to perform.

Court Disposition

Appeal allowed

Orders

  • Declaration substituted: Clause 18.6 does not exclude liability for loss of profits arising from repudiatory breach.