Release of pressure on insurers' purses

Article Abstract:

In the Nov 18 1992 UK Court of Appeal decision Gibbons and Others versus South West Water Services aggravated and exemplary damages were disallowed. The decision may result in the non-increase of insurance premiums. The plaintiffs suffered unpleasant effects from the accidental spillage of 29 tonnes of aluminium sulphate. The defendants admitted breach of contract and awards were granted. Awards for exemplary and aggravated damages were disallowed because the privatised water company was not fulfilling governmental duties and the claim did not demonstate that 'tort did not pay'.

Environmental aspects, Pollution, Water pollution, Gibbons, South West Water Services

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Who wins when principles clash?

Article Abstract:

Conflicts of principles within UK contractual law is complicated. In cases involving retention, under a standard form of contract a person entitled to retention has a right to have the retention put in a special bank account, even if there is no express provision in the contract. In GPT Realisations versus Panatown, Oct 8 1992, a person's right not to hand over money if it might materially prejudice him won the conflict over the right to retention.

Conflict of laws, GPT Realisations, Panatown

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Hong Kong rejects weak set-off link

Article Abstract:

A ruling in the Hong Kong court illustrates the limited nature of the right to withhold payment due because of an outstanding claim on another contract. It also brings into focus the legal position of the Government. The Government lost the case brought by Paul Y Construction which had not been paid for a contract because of an outstanding claim on an earlier, unrelated contract.

Laws, regulations and rules, Payment, Public contracts, Government contracts

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