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ARTICLE · 06 OCTOBER 2020

Offshore Wind Farms – How To Properly Interpret An Indemnity?

Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
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Charles Russell Speechlys LLP

Charles Russell Speechlys LLP

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The recent judgment of Gwynt y Môr OFTO Plc v Gywnt y Môr Offshore Wind Farm Limited and ors [2020] EWHC 850 (Comm) concerned the proper interpretation of an indemnity in a sale

United KingdomLitigation, Mediation & Arbitration
Amelia Hamilton
Amelia Hamilton

The recent judgment of Gwynt y Môr OFTO Plc v Gywnt y Môr Offshore Wind Farm Limited and ors [2020] EWHC 850 (Comm) concerned the proper interpretation of an indemnity in a sale and purchase agreement for the offshore transmission assets of one of the UK's largest offshore wind farms.  This case is an interesting example of how the courts will interpret indemnities, which are commonly included in contracts regarding offshore wind farms.

The SPA and repair of the cables

By a sale and purchase agreement dated 11 February 2015 (the SPA), the Defendants agreed to sell and the Claimant agreed to buy the business of owning, maintaining and operating the electrical transmission link between Gwynt y Môr wind farm and the National Grid. The assets covered by the SPA included four subsea export cables. The transaction completed on 17 February 2015.

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