Cap or No Cap: A New Eco World for Liquidated Damages?
Gavin Wilson
June 2023
A paper based on the commended entry in the Hudson Prize essay competition 2022
The paper looks at the issue of whether a penal liquidated damages clause can operate as a cap on general damages. It summarises the law on penalties and examines two recent TCC cases: Eco World, in which O’Farrell J stated obiter that a penal liquidated damages clause would cap a claim for general damages, and Buckingham, in which Mr Nissen KC stated obiter that general damages would be uncapped.