31 December 2011

Contractual Penalty Clauses and Reduction of Excessive Penalty Amounts


Walder Wyss arbitration team members, Philipp Habegger and Michael Cartier, acted for respondent/counterclaimant before a LCIA arbitral tribunal (seat London) defending a USD 100 million contractual penalty claim resulting from a take-or-pay clause in a supply contract for wind turbine gearboxes.

The dispute concerned inter alia whether the conditions for applying the penalty were given and in the alternative whether the penalty was excessive. The case settled shortly before the scheduled hearing.

News

News

31 December 2011

Contractual Penalty Clauses and Reduction of Excessive Penalty Amounts

Walder Wyss arbitration team members, Philipp Habegger and Michael Cartier, acted for respondent/counterclaimant before a LCIA arbitral tribunal (seat London) defending a USD 100 million contractual penalty claim resulting from a take-or-pay clause in a supply contract for wind turbine gearboxes.

The dispute concerned inter alia whether the conditions for applying the penalty were given and in the alternative whether the penalty was excessive. The case settled shortly before the scheduled hearing.