Cases - Stanor Electric v R Mansell

Record details

Name

Stanor Electric v R Mansell

Date

(1988)

Citation

CILL 399

Keywords

Construction contracts - liquidated damages - delayed completion - absence of provision in contract to reduce amount of liquidated damages payable

Summary

The parties entered into a contract for the construction of two houses, which contained a provision for liquidated damages in respect of late completion of both properties. Liquidated damages were stipulated as £5000 per week. Mansell sought to recover liquidated damages from Stanor.

One of the houses was completed late, and the employer sought to deduct a part of the liquidated damages sum to reflect its late completion. The judge held that as a matter of construction of the liquidated damages clause it was a penalty. The Court held that absent any contractual mechanisms entitling the employer to unilaterally reduce the amount of the LAD clause in this way, no liquidated damages could be claimed.