This On Demand was recorded on 12 February 2025.
Limitation of liability clauses play a critical role in allocating risk within commercial contracts, yet their complexity often leads to challenges in interpretation and application.
This On Demand delves into key issues, including resolving conflicts between multiple limitation clauses, understanding their interplay with indemnity provisions and insurance requirements, and navigating the role of time bar clauses in various contexts. Attendees will gain insights into how different types of limitation clauses—covering time, monetary limits, and scope—fit into broader risk management strategies.
Practical guidance will also be provided on drafting clear, consistent, and enforceable clauses while avoiding the pitfalls of fragmented drafting. Case studies, including insights from recent decisions such as Tadd Management Ltd v Weine (in which our presenter was involved) and Tauranga City Council v Harrison Grierson Holdings Ltd and Constructure Auckland Ltd, will highlight effective approaches and actionable lessons to enhance your contracting strategies.
Learning Outcomes
- Understand how limitation of liability clauses allocate risk in commercial contracts.
- Identify potential conflicts between multiple limitation clauses within the same contract and strategies to resolve them.
- Gain practical tips for drafting clear and consistent clauses that integrate seamlessly with the overall agreement to avoid disputes and misinterpretations.
- Explore the interplay between limitation clauses, indemnity provisions, and insurance clauses.
- Analyse how time limitations, monetary caps, and the scope of claims operate within contractual risk allocation.
- Examine recent case law, including Tadd Management Ltd v Weine and Tauranga City Council v Harrison Grierson Holdings Ltd and Constructure Auckland Ltd, to illustrate effective risk allocation strategies and the challenges posed by limitation of liability clauses (whether fragmented and inconsistent or even clear and comprehensive).
Who Should Watch?
General practitioners, commercial lawyers and in-house counsel who draft limitation of liability clauses. Litigators (in the context of understanding how these clauses are enforced or challenged in court).
Presenter
Aaron Sherriff, Partner, Duncan Cotterill, Wellington
