Limitation Clause In Business Contract Not Unreasonable

Elvanite Full Circle Limited v AMEC Earth & Environmental (UK) Ltd [2013] EWHC 1191

Elvanite claimed against AMEC, its professional consultant, for breach of contract. AMEC had been engaged to submit planning permission on a site for Elvanite by a stated date for a fee of about £14,000. That did not happen. Elvanite agreed, subject to contract, to sell the site to a third party conditional on planning permission and an environmental permit. When planning permission did not come through by the expected date, the property market had turned and the buyer pulled out. Elvanite sought to recover its loss of profit on the deal from AMEC, alleging breach of contract. The agreement between them stated that:

AMEC was not to be responsible for any consequential, incidental or indirect damages. The total liability of AMEC was to be limited to the total compensation actually paid or £50,000, whichever was less. All claims by Elvanite were deemed to be relinquished unless filed within one year after completion of the services. The Technology and Construction Court found against Elvanite on the facts, but it made...