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Chapter 2
In recent cases the courts have been willing to grant the amount contained in what
appears to be a penalty clause if they can prove there is a legitimate reason for
charging the excess above the party’s actual loss likely to be suffered. In this case
the court will treat the amount as if it is not a penalty.
Illustration 29 – Penalty clauses
PARKINGEYE LIMITED V BEAVIS 2015
Facts:
ParkingEye managed a car park. At the car park signs were displayed stating
that customers could have two hours free parking but if they stayed after that an
£85 charge would be levied. Mrs Beavis stayed for almost three hours.
Held:
The charge was given as a deterrent, not a penalty. The court held the amount
was given to allow the claimants to manage the car park in the best interests of
all users by preventing visitors from overstaying. As such Mrs Beavis had to
pay.
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