Recent high Court decision on Penalties and Damages Clauses

This week on You Legal TV we discuss about the recent High Court case of Paciocco v ANZ. Watch the episode here:

See below for complete transcript of this episode -

Welcome to You Legal TV.

What are the lengths you’ll go to avoid late payment fees from your bank?

The recent case of Paciocco v ANZ related to late payment, overdraft and dishonour fees of between $20 and $35. Paciocco claimed fees charged by ANZ were out of proportion to the loss suffered, and should at law be considered a 'penalty' - therefore void and unenforceable.

The High Court did not agree with Paciocco and ruled that the fees were not a penalty. The Court agreed that regulatory and operational costs do increase when customers fail to pay their bills on time, but that the fees were not an estimate of direct 'loss' for ANZ.

This decision has paved the way for a greater scope of costs to be calculated in damages clauses, including both direct and indirect costs.

Visit our blog for more information or contact us for advice on your commercial contracts.

Penalties & Damages Clauses: How a Recent High Court Decision Affects Your Contracts

What Should I Do Next?

Contact us if you would like to have any advice on your commercial contracts.  Our lawyers at You Legal will be happy to assist you in whatever way we can.

* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.