NetTV Cast Into Doubt?

What? The recent case of AstraZeneca UK Limited v Albemarle International Corporation [2011] has cast doubt on the presumption that an exclusion clause should not apply to a deliberate personal breach of contract.

So what? In light of the continuing uncertainty on whether or not exclusion clauses apply to deliberate breaches, it is a good idea to draft such a clause so as to make it clear whether or not it does apply.

Exclusion clauses and deliberate personal breach

In the case of Internet Broadcasting Corporation (trading as NetTV) v MAR LLC (trading as MARHedge) [2009] ('the NetTV case'), a deputy High Court judge held that there is a rebuttable presumption that an exclusion clause should not apply to a deliberate personal breach of contract and very clear and strong drafting would be required to persuade a court that the parties intended an exclusion clause to cover such a breach.