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Building Law Monthly

Allocation of losses caused by Covid-19

In Westminster City Council v Sports and Leisure Management Ltd [2021] EWHC 98 (TCC), Kerr J held that, on a proper interpretation of the contract between the parties, the management fee payable to the claimant could be reduced to zero in the light of the impact of Covid-19 on the contract between the parties. But it could not go below zero because the management fee was described in the contract as a fee payable to the claimant and not as a fee payable by the claimant.

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