CIS General Insurance v IBM  EWHC 347 (TCC)
Commercial disputes lawyers are familiar with clauses excluding liability for “loss of profits”. These are regularly included in contracts in the energy, sale of goods, IT and shipping fields, and form part of the allocation of risk between the parties (especially in relation to complex projects). A recent decision by Mrs Justice O’Farrell in the Technology and Construction Court suggests that such clauses may have considerably more bite than previously realised, excluding liability for claims for wasted expenditure under the “reliance loss” basis of damages. As such, the decision has potentially wide-reaching importance.