The interpretation of force majeure clauses

RTI Ltd v MUR Shipping BV [2024] UKSC 18; [2024] 1 Lloyd's Rep 621

The decision of the Supreme Court in RTI Ltd v MUR Shipping BV [2024] UKSC 18; [2024] 1 Lloyd's Rep 621 is one of considerable significance for construction lawyers given the prevalence of force majeure clauses in construction contracts. The decision establishes, or confirms, three points of particular significance in relation to the interpretation of force majeure clauses and how these points apply in the absence of express words to the contrary in the force majeure clause. First, force majeure clauses apply to events that are beyond the control of the parties. Second, the party seeking to invoke the clause must be able to demonstrate that it has taken reasonable steps, or used reasonable endeavours, to overcome the effects of the event. Third, the party seeking to invoke the clause is not obliged to accept a non-contractual performance as part of its obligation to take reasonable steps or use reasonable endeavours to overcome the effects of the event.