Articles Tagged with limitation of liability


A decision of the High Court of the United Kingdom earlier this year is an important reminder that the limitation of liability clause remains a crucial piece of any high value or complex contractual arrangement. The importance of such a clause seeking to restrict a party’s financial exposure in the event of a lawsuit or other claim is that, when enforceable, it can “cap” the amount of potential damages incurred. The issue considered in the High Court’s decision was whether a party could rely on a single liability cap rather than being subject to multiple liability caps for multiple claims. The decision hinged largely on the wording of the contract clauses and serves to remind us of key considerations when drafting limitation of liability clauses.

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