Professional Appointments: Limitation Clauses

In a recent case the court found that a limitation of liability in a contract between a Project Manager and an Employer was unenforceable.

Background

This case concerned a dispute between the Project Manager and the Employer in respect of the construction of new boarding accommodation at Ampleforth College. The works were one of three projects in relation to the college in which both parties were involved. There was no dispute as to the quality of the works but there were significant delays to completion.

The Employer brought proceedings against the Contractor which settled at mediation for substantially less than the Employer expected due to the reliance on letters of intent rather than a formal contract.  The Employer then brought proceedings against the Project Manager claiming damages for professional negligence. The Employer claimed that if the Project Manager had acted with care and skill, it would have ensured the Contractor execute the building