CMS Guide to Consequential Loss Clauses in the Energy Sector


The CMS Guide to Consequential Loss in the Energy Sector (the “Guide”) provides a summary of the approach to consequential loss in over 30 jurisdictions. The Guide approaches this complex area in the form of responses to a set series of questions:

  1. Do the words “consequential loss” have a given meaning in law?
  2. Are the words “consequential loss” used in contractual exclusion of liability clauses?
  3. If so, what meaning is attributed to the words “consequential loss” in contractual exclusion clauses?
  4. Where a clause includes other heads of loss alongside “consequential loss”, how will the law approach such clauses?
  5. Do consequential loss exclusion clauses have an impact on non-damages claims?

The Guide contains responses to these questions for each of the 35 jurisdictions. Additional, jurisdictions will be added over the next few weeks. The clear message for all working in the energy sector is that care must be taken in the approach to the exclusion of consequential loss. Further, when using the words ‘consequential loss’ it is critical to understand how this might be impacted by the choice of governing law.

You can read the full publication here: Consequential Loss Clauses in the Energy Sector: An international guide.