Penalties and Indemnities

The talk reviews two aspects of the recent decision in GPP Big Field LLP v Solar EPC Solutions SL [2018] EWHC 2866 (Comm).  First, we analyse how the law in relation to penalty clauses is to be applied following the Supreme Court decision in Cavendish Square v El Makdessi and consider what might constitute a “legitimate interest” in contractual enforcement. Second, we review the distinction between contracts of indemnity and guarantee and highlight the important ruling in GPP Big Field LLP that the rule in Holme v Brunskill does not apply to indemnities.