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Parties which deliberately and wilfully breach contracts can rely on broad exclusion or limitation of liability clauses


Introduction
A recent High Court case has provided reassurance that the courts will continue to respect and enforce clearly drafted exclusion and limitation of liability clauses, even broad ones, unless to do so would have the effect of excluding all liability for all breach or would reduce one party s obligations to a mere declaration of intent.
On 30 March 2021, in
Mott MacDonald Ltd v Trant Engineering Ltd, the High Court held that an exclusion or limitation of liability clause should be construed by reference to the normal principles of contractual construction, even where it purports to exclude or limit liability for deliberate and repudiatory breaches. Further, there should be no presumption that a party cannot rely on such a clause in respect of deliberate or repudiatory breaches. The High Court also held that no particular form of words or level of language is required to exclude or limit liability for such breaches; the wording just has to be clear. ....

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Mondelēz and Fairtrade Foundation offer financial support to female cocoa farmers


Mondelēz and Fairtrade Foundation offer financial support to female cocoa farmers
By Anthony Myers
The new ‘Cadbury Farmer Resilience Fund’ designed to protect cocoa farmer livelihoods during the COVID-19 pandemic is providing grants that will empower thousands of women farmers to start small businesses and earn a decent living.
Emerging from an existing partnership between Cadbury owner Mondelēz International and Fairtrade under the Climate Change and Organisation Strengthening Programme, the Fund was established as part of the Vulnerable Supply Chains Facility (VSCF), a rapid COVID-19 response facility set up by the UK Foreign, Commonwealth and Development Office (FCDO), and managed by Mott MacDonald Ltd. ....

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Does limited liability apply in cases of deliberate breach?


A recent decision by the Technology & Construction Court (TCC), in the case of
Mott MacDonald Ltd v Trant Engineering Ltd, centred on the interpretation of general exclusions and limitations of liability – an area where prior cases have left conflicting precedents.
At issue was whether an “interpretive presumption” – an unwritten but generally assumed implication – might thwart an exclusion or limitation of liability when the breach of contract is deliberate. The ruling highlights the benefits of agreeing a cap on liability rather than seeking a total exclusion, where contracts contain very broad clauses.
In this instance, Trant had engaged Mott MacDonald for design consultancy services, in a project to build a new power station at a military base in the Falkland Islands. Following an initial dispute, the parties entered into a settlement and services agreement (SSA) to govern their obligations on the project. The SSA contained a total cap on liability of £ ....

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