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Arbitration analysis: This decision is one of a series of judgments relating to the granting of anti-suit injunctions (ASI) to restrain Russian court proceedings commenced in breach of agreements to arbitrate, arising in connection with the Russian invasion of Ukraine and the measures taken by the Russian government and the Russian courts following the invasion and its aftermath. In this matter, the three claimant banks (Bayerische Landesbank, Landesbank Baden-Württemberg and Commerzbank AG) sought not only the revocation of the final ASIs they had obtained, but also sought the revocation of declarations regarding jurisdiction, governing law, and breach of contract. This decision therefore provides guidance on the circumstances in which the English courts will revoke orders and declarations they have made. Written by Oliver Browne, partner at Paul Hastings (Europe) LLP.
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The Competition and Markets Authority (CMA) has published its heating oil market study, recommending that the UK and devolved governments introduce a new proportionate regulatory regime for heating oil suppliers serving approximately 1.5 million households. The CMA found that retail prices peaked at 92% above February 2026 levels in April 2026, with wholesale cost increases accounting for 83% of the March 2026 retail price rise. Recommended measures include mandatory supplier registration, minimum standards for price quotation and cancellation handling, access to independent dispute resolution and a register for vulnerable households. The CMA has identified approximately 1,700 customers affected by possible contract breaches following order cancellations while some suppliers have agreed to compensate affected customers, the CMA is preparing court-based enforcement action against those that fail to do so voluntarily. The CMA has also separately written to liquefied petroleum gas suppliers reminding them of their obligations under consumer protection law, with no finding of infringement made at this stage.
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Commercial analysis: The court gave reverse summary judgment on the claim, and on the counterclaim, in a case concerning two reseller agreements and exclusion clauses. In doing so the court had to consider whether the agreements were the defendant’s standard terms of business, which would have engaged the Unfair Contract Terms Act 1977 (UCTA 1977). The court concluded that they were not. It went on to consider whether summary judgment was appropriate on the issues of construction of the exclusion clauses. It concluded that it was. It is a useful consideration of what can be fact specific problems which arise often in the context of complex commercial agreements. Written by James Davies, barrister and mediator at New Square Chambers.
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TMT analysis: The pace of change in Artificial intelligence technology is ever increasing. Multiple new laws and regulations have been adopted or are in progress to address the risks and issues arising from the development and use of the technology. This changing environment creates a challenge for contract lawyers to ensure that AI systems used in the delivery of services are maintained and further developed in order to stay safe, secure and technically up to date, as well as remaining compliant with the law. Customers’ requirements may also change rapidly and flexibility to change contracts or suppliers is therefore crucial. Multiple protections and processes can be deployed to ‘futureproof’ contracts to protect the interests of both suppliers and customers. Written by Peter Mason, legal director, and Marcus Bagnall, partner at Wiggin LLP.
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Restructuring & Insolvency analysis: This was an application by the joint administrators of Signature Living Residential Ltd (Signature) under para 71 of Sch B1 to the Insolvency Act 1986 (IA 1986). In that context, the court had to address various questions relating to a buyer’s equitable lien. It was held that the fact that deposit insurance had been taken out did not interfere with the priority of the equitable liens over another security. Further, it was held that an equitable lien, where the contract was for the sale of a flat within a development, was limited in geographical scope to the area of the flat, rather than applying to the whole site. The court also had to decide whether certain contracts for the sale of long leases complied with section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989). Written by Nora Wannagat, barrister at 9 Stone Buildings.
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Dispute Resolution analysis: When does time start to run for limitation purposes in a claim for the recovery of sums transferred on a basis that subsequently fails? This was a point addressed by the judge in reaching the decision to summarily dismiss claims on the basis that they were time-barred. In particular, the Commercial Court decided that it is not necessary for the underlying contract to be terminated before any claim in unjust enrichment can be brought and that the cause of action accrues (and time starts to run) when the state of affairs contemplated as the basis or reason for the payments fails to materialise. Written by Benjamin Coffer, arbitrator, Quadrant Chambers.
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Dispute Resolution analysis: To succeed in a claim for unjust enrichment, the claimant must prove that the defendant has been enriched. In the recent case of Dowman Imports v 2 Toobz, however, the court has held that a claim in unjust enrichment can succeed ‘even if the idea of an enduring benefit to the defendant is essentially a fictional one’. This wide-ranging judgment provides useful guidance on the court’s approach to unjust enrichment claims for services provided in anticipation of concluding a contract. The decision also provides a salutary lesson on the consequences of not adducing expert evidence and failing to seek permission to rely on real evidence (in this case soft toys) under CPR 33.6. Written by Harriet Campbell, professional support lawyer, at Stephenson Harwood LLP.
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The Local Government and Social Care Ombudsman (LGSCO) has investigated a complaint regarding The Grange Care Home's handling of Funded Nursing Care (FNC) payments. The investigation revealed that the care home's contract lacked clarity on the treatment of FNC payments. Despite the Ombudsman's recommendation to reissue the final invoice with FNC payments deducted, the care home failed to provide the suggested financial remedy. Consequently, the Ombudsman has issued an adverse findings notice against the provider, emphasising the importance of clear contracts in line with Competition and Markets Authority guidance and Care Quality Commission regulations. The case underscores the need for care homes to explicitly state their policies on FNC payments in resident contracts to avoid similar disputes in future.
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This week's edition of Commercial weekly highlights includes: commentary on the decision in Orion Shipping v Great Asia Maritime which considered whether a seller’s failure to deliver a vessel by the required cancellation date amounted to a repudiatory breach of contract and therefore gave rise to a claim for loss of bargain damages, news that the International Chamber of Commerce has published a report on the benefits of trade digitalisation which sets out how supply chain actors take advantage of digital tools and interoperable global standards to address supply chain challenges, and news that the Department for Business and Trade has announced that the UK-Ukraine Digital Trade Agreement (DTA) entered into force on 1 September 2024.
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Crown Commercial Service (CCS) has published an article providing guidance on the benefits of working with small and medium‑sized enterprises (SMEs) in public sector procurement. The guidance highlights benefits, such as strong customer service, greater adaptability, and contributions to local economic growth and job creation. It also notes that SMEs often face barriers in public procurement, including limited market engagement, incumbency bias, complex and lengthy procurement processes, and poor visibility of opportunities. To address these challenges, CCS recommends four approaches for public sector buyers: (1) strengthening open communication through pre‑market engagement with potential suppliers; (2) simplifying and streamlining documentation using plain English; (3) setting fair contract terms and weightings and (4) ensuring open and accessible opportunities through tailored requirements and the encouragement of joint bids.
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The Department for Business and Trade (DBT) has announced a four-year extension to the UK-Switzerland Services Mobility Agreement (SMA) until 31 December 2029. The agreement permits UK professionals to travel to Switzerland and deliver services visa-free for up to 90 days per year without facing economic interests tests or work permit requirements during this period. Swiss professionals may provide services in the UK under contract through the service supplier visa for up to 12 months across key sectors including finance, consultancy, legal services, technology and creative industries. The extension provides certainty for businesses and service providers while negotiations continue for a permanent solution within the Free Trade Agreement framework. The announcement follows a previous extension announced in November 2022.
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The European Parliament Committee on the Internal Market and Consumer Protection has released a draft report on addictive design of online services and consumer protection in the EU single market, which includes a motion for a Parliament resolution. The report also highlighted the harmful impact addictive online services had on people's health and emphasised the urgent need to regulate addictive design of online services. Parliament is now calling on the European Commission to bring forth a legislation against addictive design and urges the Commission to revise the Unfair Commercial Practices Directive (UCPD), Consumer Rights Directive and Unfair Contract Terms Directive (Fitness check), to tackle the rising issues regarding the addictive and manipulative design of online services.