‘The Supreme Court has provided long awaited clarification of the law on penalty clauses and liquidated damages, upholding the “penalty rule” but further limiting its utility in a commercial setting. In the adjoined appeals of Cavendish Square Holding v Talal El Makdessi and ParkingEye Limited v Beavis the Supreme Court created a new authority for consideration of the penalty rule doctrine, termed by Lordships Neuberger and Sumption to be “an ancient, haphazardly constructed edifice which has not weathered well”.’
RPC Built Environment, 6th January 2016
Source: www.rpc.co.uk
