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NEWS
Arbitration analysis: In a complex dispute stemming from multiple interlinked contracts, multiple arbitrations and a settlement agreement arising from a hydrocarbons project in Cameroon, the English Commercial Court has maintained an anti-suit injunction preventing legal proceedings from being pursued in Cameroon and mandating the discontinuation of ongoing actions. Despite challenges disputing the validity of the relevant arbitration clause, arguments regarding the court's jurisdiction, and assertions that court proceedings in Cameroon sought only interim relief (not inherently incompatible with arbitration), the English Commercial Court affirmed its jurisdiction and determined that the arbitration clause in the settlement agreement was binding and had indeed been breached. This case not only underscores the court's dedication to enforcing arbitration agreements and preventing parties from pursuing parallel legal actions in violation of such agreements, but it also carries practical implications for complex international commercial disputes involving multiple contractual structures typically present in the oil and gas sector as well as the importance of ensuring consistency in such provisions. Written by Clément Fouchard, partner, and Adam Calloway, jurist at Reed Smith LLP, Paris.
Q&As
The response below considers: • the protection from redundancy provided to a woman on maternity leave • the employee’s right to pay during the statutory notice period • whether statutory notice pay can be offset against statutory maternity pay Redundancy during maternity leave Special considerations apply where a woman on maternity leave is potentially redundant. In this situation, the dismissal will be unfair under section 74 of the Employment Rights Act 1996 (ERA 1996) and the Maternity and Parental Leave etc Regulations 1999, SI 1999/3312, reg 10 unless: • the employer first establishes that it was not practicable by reason of redundancy to continue to employ her under her existing contract of employment, ie that it was necessary to implement the redundancy
NEWS
The Department for Energy Security and Net Zero (DESNZ) has announced an expansion of the Energy Ombudsman to offer free support for small businesses and organisations of less than 50 employees with energy contract disputes. The initiative was introduced as part of government and Ofgem efforts to stop energy supplier practices such as hidden fees, inaccurate energy bills and pressurising sales tactics for energy contracts in Great Britain. The Ombudsman has the power to order energy suppliers to provide compensation of up to £10,000 or take action to resolve issues. Ofgem has also set out wider plans to improve energy services for businesses and other non-domestic customers alongside this announcement, including a requirement for energy brokers to provide full transparency over fees within their contracts and expanding their Standard of Conduct rules for energy suppliers to ensure all businesses receive the same level of support with issues.
Q&As
No person may carry on regulated activities ‘by way of business’ in the UK unless he is an authorised person or an exempt person: Financial Services and Markets Act 2000 (FSMA 2000), s 22. The Regulated Activities Order 2001, SI 2001/544 (RAO 2001) sets out six regulated mortgage activities requiring authorisation or exemption if they are carried on in the UK: • arranging regulated mortgage contracts • making arrangements with a view to regulated mortgage contracts • advising on regulated mortgage contracts • entering into a regulated mortgage contract as lender • administering a regulated mortgage contract where that contract is entered into by way of business on or after 31 October 2004; and • agreeing to carry on
Q&As
The stated objective The government’s stated objective was that the New Code (Part 1 of Schedule 3A to the Communications Act 2003 (CA 2003)) should not be contracted out of at all. The Department for Culture Media and Sport Department for Culture Media and Sport: A New Electronic Communications Code in its White Paper, May 2016) said this, ‘the Government considers that any attempts by one or more parties to gain advantage by circumventing the new Code’s provisions must be prohibited if the Code is to be truly effective. We will therefore make provision in the revised Code to prohibit the ability to contract out and stop parties making private agreements capable of excluding Code provisions’. However, that objective was not fully followed through into the New Code. The contracting out provision The contracting out provision is contained in paragraph 100 of the New Code. It provides:
PRECEDENTS
1 The Contractor shall act as the [principal designer and] principal contractor under the Construction (Design and Management) Regulations 2015 SI 2015/51 (‘CDM Regulations’) for the Works.
NEWS
The Welsh Government has announced a reformed NHS dental contract to take effect in April 2026, aimed at improving access, fairness, and quality of care across Wales. Replacing the outdated units of dental activity model, the new system will prioritise treatment based on individual oral health needs, ensuring more frequent appointments for those requiring care while maintaining continuity for patients with good oral health. Following public consultation, the contract was revised to preserve patient-dentist relationships and simplify charges, with patients contributing 50% of treatment costs, capped at £384. Dentists will receive increased NHS payments, and additional funding will support collaborative cluster development to integrate dentistry into wider preventative healthcare.
NEWS
The International Swaps and Derivatives Association (ISDA) has published a paper examining the extension of the Common Domain Model (CDM) to cover umbrella agreements and contract amendments, two areas previously absent from the CDM’s legal agreement model. Umbrella agreements document multiple bilateral relationships within a single legal document, commonly used where investment managers act for multiple funds or entities. Contract amendments cover bilateral restatements and market-wide ISDA protocols. The paper sets out how each area is now modelled in machine-readable form and makes the case for adoption by firms, vendors and infrastructure providers.
NEWS
Commercial analysis: This was a sale of goods dispute, in which the parties had agreed the price of a fixed quantity of product, with the price for additional product to be fixed at a later date, in order to allow for market volatility. When the parties did not agree on the price for the additional product, one party used that as an excuse to argue that there was no binding agreement with regard to that additional product.The Commercial Court decided that it was not appropriate to imply a term as to what the price for the additional product should be. There was, therefore, no binding agreement with regard to the additional product.The Court of Appeal has now disagreed and found that, on the facts of this case, a term could be implied into the contract that the price for the additional product should be the reasonable or market price (which, the Court of Appeal said, were the same thing). Dimitris Anassis, partner, and Reema Shour, professional support lawyer, both at Hill Dickinson, consider the court’s decision in KSY Juice Blends UK Ltd v Citrosuco GmbH.
PRACTICE NOTES
The basis of an FM contract When entering into a facilities management (FM) contract there is a lot to consider (see Diagram: What does a Facilities Management contract look like) and to agree. As with all forms of contract there must be offer, unconditional acceptance and due consideration for it to be legally binding. The issue of an initial invitation to tender for FM services does not generally amount to an 'offer' in the legal sense—it is the FM contractor’s response which would constitute the first 'offer'
Q&As
In answering this Q&A, we assume that all parties belong in the UK. It is standard practice for commercial contracts to include a clause providing that, if the supply to which the contract relates is chargeable to VAT, VAT will be payable in addition to the consideration set out in the contract. This clause does not determine whether or not VAT is chargeable on the supply. The question of whether VAT is chargeable will be determined by the nature
Q&As
Under the entitlement under the Working Time Regulations 1998 (WTR 1998), SI 1998/1833, a worker is entitled to 5.6 weeks’ paid annual leave, comprising: • a basic entitlement of four weeks’ annual paid leave, implementing the right under Directive 2003/88/EC, the Working Time Directive (WTD) • an additional entitlement of 1.6 weeks’ annual leave, which is a right under WTR 1998 only For detailed information on the right to paid annual leave, see Practice Notes: Holiday and Holiday pay. Holiday entitlement for shift workers In the case of workers with regular working hours, calculating the annual leave entitlement in terms of days is a relatively straightforward exercise, ie: • a full-time worker who works five days a week is entitled to 5.6 x 5 =28 days • a part-time worker who works three days a week is entitled