Murray v Leisureplay plc

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

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

Facts

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

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’.

gollark: --choose 100 lyricly potatos gollark
gollark: There's a big table of insults/negative words, things which generally separate clauses, and things which imply they don't mean the real potatOS.
gollark: ```luafunction _G.is_blasphemous(message) local clauses = {message:lower()} for _, sep in pairs(clause_separators) do local out = {} for _, x in pairs(clauses) do for _, y in pairs(string.split(x, sep)) do table.insert(out, y) end end clauses = out end for _, clause in pairs(clauses) do for _, word in pairs(negative_words) do if clause:match(word) and clause:match "potatos" then for _, iword in pairs(ignore_if_present_words) do if clause:match(iword) then return false, iword, clause end end return true, word, clause end end end return falseend```
gollark: It has a surprisingly good algorithm for guessing whether people *intended* to blaspheme potatOS.
gollark: https://pastebin.com/W1NrsnQe

See also

Notes

    References
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