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BUCKINGHAM GROUP CONTRACTING LTD v PEEL L&P INVESTMENTS AND PROPERTY LTD

Construction Law Reporter

BUCKINGHAM GROUP CONTRACTING LTD v PEEL L&P INVESTMENTS AND PROPERTY LTD

Liquidated damages – Whether clause void and unenforceable – Existence of a cap on general damages recoverable

The defendant employed the claimant to design and construct a production building together with certain external works in connection with the construction of a new plant for the manufacture of corrugated cardboard. There were substantial delays to the works and this led to disputes between the parties as to the responsibility for these delays. In the present proceedings the claimant submitted that the liquidated damages clause in the contract between the parties was void and unenforceable and that any remedy in respect of general damages was capped at £1,928,253.77. This was not a case in which the issue between the parties was whether the agreed damages clause amounted in law to a penalty. Rather, the issue was whether the clause was too uncertain to be given effect such that the defendant was not entitled to levy or withhold liquidated damages in respect of the delay.

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