Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Key definition
Penalty definition

What does Penalty mean? In contract practice, a penalty (or penalty clause) is a term that, on breach, requires the defaulting party to pay money or suffer another detriment aimed at deterring non‑performance rather than providing a proportionate, pre‑agreed remedy. Across England & Wales, Scotland and Northern Ireland, the penalty rule is case law (not statutory), developed in Dunlop and refined in Cavendish v Makdessi/ParkingEye. A clause is penal and unenforceable if it imposes a detriment out of all proportion to the innocent party’s legitimate interest in performance or enforcement. The assessment is one of substance, not label, and is not limited to payments: forfeiture...

Read More Right Arrow

UK CMA merger control: EMR/Ausurus–Metal & Waste Recycling—SLC findings, divestiture remedies, and £300,000 penalty for initial enforcement order hold-separate breaches (2017–2018)

Practice notes
imgtext

CASE HUB ARCHIVED – this archived case hub presents the position as at the Penalty notice dated 20 December 2018; it is no longer being maintained. See also the timeline, commentary and related cases.

Case facts

Outline

UK merger investigation into the completed acquisition by European Metal Recycling Limited of Metal & Waste Recycling Limited. The deal gives rise to horizontal overlaps within markets for metal recycling.

Latest developments

On 20 December 2018, the CMA issued a penalty notice to Ausurus and EMR for failure to comply with the initial Enforcement order (IEO) imposed by the CMA. A combined penalty of £300,000 was levied for two infringements...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
Web page updated on 27/05/2026

Popular documents

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Read More Right Arrow

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Read More Right Arrow

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Read More Right Arrow

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...

Read More Right Arrow