RE: New opinion piece on damages award22 Feb 2022 07:33
Thanks again HNS
No break fee as I previously said , is at least now clear for all.
Break fees
The contract did not contain a break fee, which may otherwise have required Cineworld to pay a pre-negotiated termination payment to walk away.
Break fees are routine in M&A transactions. Indeed, Cineworld’s largest shareholders thought, mistakenly, that there was a $30 million break fee.8
Although the parties have not raised this point, it raises an interesting question concerning the scope of damages awards in contracts without break fees, and what significance, if any, industry practice of using commercially reasonable break fees might have on determining expectation damages.