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Supreme Court decision on liquidated damages and termination simplified

  • United Kingdom
  • Construction and engineering
  • Litigation and dispute management


The Supreme Court has overturned the decision of the Court of Appeal.  The Court of Appeal had held that if a contract is terminated accrued LADs are not recoverable only general damages.  The Supreme Court has returned to the status quo and held that LADs accrued up to termination of the contract remain payable and post termination the contractor is liable for general damages* – Triple Point Technology Inc v PTT Public Company Ltd [2021] UKSC29.

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* note this is the general principle and may be amended by contractual terms.