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Once more unto the breach

20 October 2011 / Melanie Shefford , Ceri Morgan
Issue: 7486 / Categories: Features , Limitation , Commercial
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Do exclusion or limitation of liability clauses apply to cases of deliberate repudiatory breach, ask Ceri Morgan & Melanie Shefford

For the last two years, there has been widespread concern among legal practitioners that contractual clauses excluding or limiting liability (unless clearly drafted) may not operate where there has been a deliberate repudiatory breach of that contract by one of the parties. These concerns arose following the High Court decision in Internet Broadcasting Corporation v MAR LLC (Marhedge) [2009] EWHC 844 (Ch), [2010] 1 All ER (Comm) 112 (NetTV), in which Mr Moss QC, sitting as a High Court judge held that there was a rebuttable presumption that an exclusion clause should not apply to a deliberate personal repudiatory breach of contract.

However, the NetTV decision has recently been subject to scrutiny by Mr Justice Flaux in the case of AstraZeneca UK Limited v Albemarle International Corporation and Albemarle Corporation [2011] EWHC 1574. Flaux J concluded in obiter dicta that no such presumption existed and any question of limitation

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Commercial leasehold, the defence of insanity and ‘consent’ in the criminal law are among the next tranche of projects for the Law Commission
The Bar has a culture of ‘impunity’ and ‘collusive bystanding’ in which making a complaint is deemed career-ending due to a ‘cohort of untouchables’ at the top, Baroness Harriet Harman KC has found
Lawyers have broadly welcomed plans to electronically tag up to 22,000 more offenders, scrap most prison terms below a year and make prisoners ‘earn’ early release
David Lammy, Ellie Reeves and Baroness Levitt have taken up office at the Ministry of Justice, following the cabinet reshuffle
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