Shared Network Services Ltd v Nextira One UK Ltd

Shared Network Services Ltd v Nextira One UK Ltd

Clause 14.2 of the agreement effectively limits the Defendant's liability to 50% of service charges paid in the preceding 12 months. As no service charges were paid, the Defendant has no liability. The clause is reasonable under section 3 of the Unfair Contract Terms Act 1977, and applies to all damages for breach, including repudiatory breach. The claim has no real prospect of success and is dismissed.

Parties
Claimant: Shared Network Services Limited; Defendant: Nextira One UK Limited
Jurisdiction
England and Wales
Judgment Date
09 December 2011
Procedural Posture
Commercial Contract Dispute / Summary Judgment Application
Outcome
Claim dismissed by summary judgment
Legal Topics
Limitation of Liability, Summary Judgment, Unfair Contract Terms Act 1977, Repudiatory Breach
Contract Law Commercial Law Limitation of Liability Summary Judgment Unfair Contract Terms Act 1977 Repudiatory Breach

Case Brief

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Parties

Shared Network Services Limited

Claimant

Nextira One UK Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Summary Judgment Application

Legal Issues

  1. 1 Whether clause 14.2 of the agreement limits the Defendant's liability to zero due to no service charges paid
  2. 2 Whether clause 14.2 is unenforceable under section 3 of the Unfair Contract Terms Act 1977 for unreasonableness
  3. 3 Whether damages for repudiatory breach fall outside the scope of clause 14.2

Ratio Decidendi

Clause 14.2 of the agreement effectively limits the Defendant's liability to 50% of service charges paid in the preceding 12 months. As no service charges were paid, the Defendant has no liability. The clause is reasonable under section 3 of the Unfair Contract Terms Act 1977, and applies to all damages for breach, including repudiatory breach. The claim has no real prospect of success and is dismissed.

Court Disposition

Claim dismissed by summary judgment

Orders

  • Summary judgment entered for the Defendant
  • Claim dismissed