Transocean Drilling UK Ltd v Providence Resources PLC  EWCA Civ 372
The Court of Appeal has allowed an appeal against a judgment of the High Court holding that liability for ‘spread costs’ was not excluded by a ‘consequential loss’ clause in a drilling contract on an amended LOGIC form.
Malcolm Jarvis looks at the potentially far reaching implications for parties engaged in exploration and production activities in the energy sector. In particular the judgment is significant for contracts containing ‘knock for knock’ provisions which include provisions excluding liability for ‘consequential loss’. At the heart of the judgment is a robust, and welcome, reaffirmation of the freedom of commercial parties to determine the terms on which they wish to do business.
Read full article here.