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Litigation – Sitting on Your Hands is a Good Way of Ensuring Defeat!

Every step in litigation is subject to rigorously enforced time limits and sitting on your hands when faced with a claim is simply not an option. Developers found that out to their cost when their failure to act promptly resulted in the forfeiture of their right to defend a substantial breach of contract claim. The developers and project managers that they had...

Restrictive Covenant Binding on Top Recruitment Consultant

Senior employees know the intimate details of the companies they work for and their departure to a competitor’s fold can be a disaster. However, a High Court case showed that professionally drafted contractual restrictions on what they can and cannot do after they leave can be highly effective in softening the blow. The case concerned a woman who had performed...

Insolvency Proceedings Must Not Be Used to Turn the Screw

Insolvency proceedings must not be used as a means of bringing pressure to bear in commercial disputes and are only appropriate where there is a genuine inability to pay debts. The High Court made those points in blocking a winding up petition against a company that was far from the financial brink. The dispute arose out of the company’s non-payment of a...

Contractual Restrictions on Right to Litigate – High Court Ruling

There is nothing commercially absurd about contractual restrictions on the right to litigate. The High Court made that point in dealing a blow to a subcontractor’s hopes of winning an additional £1 million for its work on a major infrastructure project. During the project, there were four sets of adjudication proceedings between the subcontractor and the main...

Insuring a Risk? Absolute Frankness Is the Best Policy!

When you take out an insurance policy, it might seem tempting to minimise the risk insured against with a view to reducing the premium. However, one High Court case concerning a catastrophic property fire showed why absolute frankness is required. The case concerned a five-storey mixed commercial and residential property that was so severely damaged by a fire...

Shipping – Judges Will Not Rewrite Bargains Freely Entered Into

Commodity prices go up and down and it sometimes makes financial sense for fully laden vessels to remain at sea for extended periods before discharging their cargos. In considering the financial consequences of one such situation, the High Court emphasised that judges are not in the business of rewriting bargains that have been freely entered into by...