Western Australian Court takes a new, more commercial, approach to consequential loss exclusions - .PDF file.
The law surrounding consequential loss remains complex and unclear following a recent decision in the Western Australian Supreme Court, which emphasises the need for fulsome, clear drafting of consequential loss exclusion clauses.
In Regional Power Corporation v Pacific Hydro Group Two Pty Ltd [No 2]  WASC 356, Justice Martin rejected both the English approach to the construction of the term ‘consequential loss’ as falling under the second limb of Hadley v Baxendale and the view adopted by the Victorian Court of Appeal in Environmental Systems Pty Ltd v Peerless Holdings Pty Ltd.
In 1994, Pacific Hydro entered into a power purchase agreement (PPA) with the Regional Power Corporation for the construction of, and then the supply of electricity from, the Ord Hydro Power Station to the corporation…
If you are registered and logged in to the site, click on the link below to read the rest of the King & Wood Mallesons briefing. If not, please register or sign in with your details below.