Drax Energy Solutions Limited (formerly Haven Power Limited) v Wipro Limited

Drax Energy Solutions Limited (formerly Haven Power Limited) v Wipro Limited

Clause 33.2 of the MSA provides for a single aggregate cap on the Defendant’s liability for the Claimant’s claims, not multiple caps. The term 'claim' does not equate to 'cause of action' but refers to the first of all claims made, and the cap is determined by the charges paid or payable in the first contract year.

Parties
Claimant: Drax Energy Solutions Limited; Defendant: Wipro Limited
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Commercial Contract Dispute (preliminary Issues) / Judgment on Preliminary Issues
Outcome
Preliminary issues determined in favour of the Defendant (Wipro): single aggregate cap applies.
Legal Topics
Limitation of Liability, Interpretation of Contracts, Software Services Agreements, Aggregate Liability Caps
Contract Law Commercial Law Technology Law Limitation of Liability Interpretation of Contracts Software Services Agreements Aggregate Liability Caps

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Parties

Drax Energy Solutions Limited

Claimant

Wipro Limited

Defendant

Procedural Posture

Commercial Contract Dispute (preliminary Issues) / Judgment on Preliminary Issues

Legal Issues

  1. 1 Whether clause 33.2 of the MSA provides for a single aggregate cap or multiple caps for liability
  2. 2 How 'claim' is to be interpreted for the purposes of the limitation clause

Ratio Decidendi

Clause 33.2 of the MSA provides for a single aggregate cap on the Defendant’s liability for the Claimant’s claims, not multiple caps. The term 'claim' does not equate to 'cause of action' but refers to the first of all claims made, and the cap is determined by the charges paid or payable in the first contract year.

Court Disposition

Preliminary issues determined in favour of the Defendant (Wipro): single aggregate cap applies.

Orders

  • Clause 33.2 of the MSA provides for a single aggregate cap on liability for all claims.
  • If there were multiple caps, they would apply to the Misrepresentation, Quality, Delay, and Termination claims as set out in Drax’s Further Information.