Developer’s claim for £28m lost profits rejected by High Court.
On 29th July 2011 the High Court rejected the claimant developer’s claim for damages of £28m for loss of profits that would have been made on a new shopping centre development in Wolverhampton. Lewison J held that the development would not have proceeded in any event, even if the defendant unit holders had provided bank guarantees and entered into subscription agreements in accordance with their contract; and that if the claimant had proceeded it would have made a loss in excess of £81m. Nominal damages of £2 were awarded for breach of contract.
The judgment contains an interesting analysis of the effect of serving a notice making time of the essence – in brief it “removes the interference of equity” and turns delayed performance into non-performance – and on whether the right to terminate is lost by the innocent party continuing to press for performance while purporting to reserve its position (see paras 186 - 205).
Jonathan Gaunt QC with James Cutress of Fountain Court represented the Defendants.
Back to news listing
