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ARTICLE · 27 FEBRUARY 2024

Can You Exclude Liability For Dishonesty?

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A High Court judge has construed the limitation of liability provisions in a research agreement as effective to limit a party's liability for dishonesty in the performance of the contract by their employee.

United KingdomReal Estate and Construction
David Lowe
David Lowe
Sean Adams
Sean Adams
Christopher Richards
Christopher Richards
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A High Court judge has construed the limitation of liability provisions in a research agreement as effective to limit a party's liability for dishonesty in the performance of the contract by their employee. Here, we look at the drafting implications of the decision.

In Innovate Pharmaceuticals Ltd v University of Portsmouth Higher Education Corporation [2024] EWHC 35 (TCC), Roger Ter Haar KC (sitting as a Deputy High Court Judge) held that an exclusion clause was effective to exclude a party's liability for dishonesty in performance of the contract by its employee - but also signalled that it would, in principle, be possible to exclude dishonesty by the party itself.

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