The Supreme Court has handed down judgment in the cases of Cavendish Square Holding BV v Talal El Makdessi and ParkingEye Ltd v Beavis. It was not just the construction sector that waited patiently and speculated cautiously as to what the court would do with the rule against penalties. Would it confirm the current rule, abolish it, extend it, restrict its scope, or change the formulation? The prospects of obtaining a simple clear answer from the court were not promising: two cases with very different factual circumstances were heard together, there were seven judges on the bench, and the case was complicated by recent changes to the law in Australia and the Consumers’ Association “intervening” in the court proceedings. Continue reading
