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Murray v Leisureplay plc

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Murray v Leisureplay plc
CourtCourt of Appeal of England and Wales
Citations[2005] EWCA Civ 963, [2005] IRLR 946
Keywords
Contract, remedies

Murray v Leisureplay plc [2005] EWCA Civ 963 is an English contract law case, concerning the termination of an agreement and penalty clauses.

Facts

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An employment contract said ‘in the event of wrongful termination by way of liquidated damages the company shall forthwith pay to the Executive a sum equal to one year’s gross salary, pension contributions and other benefits in kind.’ Leisureplay plc claimed that the bonus should be void as a penalty clause.

In the High Court, Burnton J held it was penal because no account was taken of the Executive’s duty to mitigate his loss.

Judgment

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The Court of Appeal held that the bonus was valid. Arden LJ held the clause was ‘generous’ but still liquidated damages, as it was not ‘extravagant or unconscionable’.

See also

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Notes

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References

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