The Disputed Penalty Clause

During phase 1 of the arbitration procedure in relation to Mall of Scandinavia, the remit of the arbitration panel included having to establish the content in a penalty clause concerning delayed access to shop premises. The parties had differing views on how the parties' agreements and construction contracts should be interpreted in relation to the date of taking possession of the shop premises.

During the contract period, the parties had signed a supplement to the construction contract that would represent the parties' consensus in issues where disagreements had arisen, including in issues concerning right to time extension, deviations from contractual requirements and penalties.