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England and Wales High Court (Technology and Construction Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Technology and Construction Court) Decisions >> Wessanen Foods Ltd v Jofson Ltd [2006] EWHC 1325 (TCC) (08 June 2006) URL: http://www.bailii.org/ew/cases/EWHC/TCC/2006/1325.html Cite as: [2006] EWHC 1325 (TCC) |
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QUEEN'S BENCH DIVISION
TECHNOLOGY AND CONSTRUCTION COURT
133-137 Fetter Lane London, EC4A 1HD |
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B e f o r e :
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WESSANEN FOODS LTD |
Claimant |
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- and - |
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JOFSON LTD |
Defendant |
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Mr John Slater QC and Mr James Medd (instructed by Kennedys) for the Defendant
Hearing Dates: 25 & 26 April, 2, 3, 4, 8, 9, 10 & 11 May 2006
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Crown Copyright ©
His Honour Judge Peter Coulson QC:
A. INTRODUCTION
B. THE CONTRACTUAL AND TORTIOUS OBLIGATIONS
B1 General
a) a letter from the Defendant to the Claimant of 30 May 2000, together with two Appendices dealing with increases in net monthly payments for specific matters such as the spare battery and battery trolley (Appendix 1) and a table showing the truck hours worked in 1999 and 2000 by the vehicles previously hired by the Claimant from the Defendant (Appendix 2).
b) The Defendant's Hire Contract document, which included with it the Defendant's General Terms and Conditions of Sale, and an appendix signed and dated by both parties on 31 May 2000.
B2 Quality
"The Owner shall ensure that at commencement of the hire the Plant shall be of sound construction and in good working order and properly maintained and that at that time all Regulations regarding construction, maintenance, testing and inspection applicable to the Plant have been complied with."
"(a) fitness for all the purposes for which goods of the kind in question are commonly supplied,
(b) appearance and finish,
(c) freedom from minor defects,
(d) safety, and
(e) durability."
"(c) unless notification in writing to the contrary is received by the Owner from the Hirer within three working days of the Plant being delivered to the site the Plant shall be deemed to be in good order, save for either an inherent fault or a fault not ascertainable by reasonable examination, in accordance with the terms of the Contract and to the Hirer's satisfaction. The Hirer shall be responsible for its safekeeping, use in a workmanlike manner within the Manufacturer's rated capacity and return on the completion of the hire in equal good order (fair wear and tear accepted)."
B3 Familiarisation Training
B4 Maintenance and Repair
"Owners' obligations
…
(b) The Owner shall (save as hereinafter provided) carry out and provide all necessary repairs and replacements as quickly as reasonably possible, and (so far as reasonably possible and during normal working hours) at times to suit the convenience of the Hirer.
Hirer's Obligations
(a) The Hirer shall repair all punctures and replace all damaged tyres at his own expense, but save as aforesaid he shall not repair the Plant or make replacements or alterations unless authorised to do so by the Owner. Any replacements by the Hirer shall forthwith become the property of the Owner, and part of the Plant unless otherwise agreed in writing.
(b) The Hirer shall forthwith notify the Owner if the Plant breaks down or fails to work properly, or if any repairs or replacements (other than to or of punctured tyres) are necessary."
"Our responsibility for Service back-up is formally detailed, if briefly, in the terms and conditions of the contract. In summary, we are responsible for all preventative maintenance and repairs to include:
- arranging and undertaking planned preventative maintenance visits during normal working hours, but at times most convenient to you. This will include the provision of Service Reports for your files which will satisfy the requirements of Health and Safety Regulations.
- Carrying out repairs as quickly as possible. Usually this means responding to the initial breakdown within 4 working hours and undertaking a satisfactory repair within 24 hours. In an emergency we will provide a replacement truck if the repair cannot be carried out within a practical time scale."
B5 Limitation of Liability
"6. HIRER'S LIABILITY FOR LOSS OR DAMAGE
(a) The Hirer accepts full responsibility to the Owner for loss or damage to or destruction of the Plant suffered during the period of hire from whatever cause the same may arise (fair wear and tear or Owner's negligence excepted) and is fully responsible to the Owner for the safekeeping of the Plant and its return in equal order to the Owner at the end of the hire (fair wear and tear excepted).
(b) The Hirer accepts all liability and responsibility in respect of, and shall fully and completely indemnify the Owner against, all third party claims and losses howsoever arising in respect of damage to or loss or destruction of any property or in respect of the personal injury or death of anybody in any way caused by or relating to the Plant or its use (including but not limited to the payment of all damages, costs and charges in connection therewith) except in so far as the damage, loss, destruction, injury or death directly results from the negligence of the Owner, its employees or agents.
(c) The Owner shall not be liable to the Hirer in respect of any damage to or loss or destruction of the property of the Hirer, nor in respect of the personal injury or death of the Hirer or his employees or contractors or other person in any way caused by or relating to the Plant or its use except in so far as any such damage, loss, destruction, injury or death directly results from the negligence of the Owner, its employees or agents."
"14. ALLOWANCE AND LIABILITY
(a) Without prejudice to the provisions for payment herein before set out, the Hirer shall be fully liable to the Owner for damages for any breach of this Contract.
(b) Without prejudice to any liability assumed under clauses 2(c) and 6(c), the Owner shall not be liable to the Hirer for any consequential or indirect loss or damage (including loss of profits) arising out of any accident or damage howsoever caused, provided always that nothing in this sub-clause shall protect the Owner against liability arising from a fundamental breach of contract on its part."
a) arise out of the Defendant's negligence (ie, any breach of contract is irrelevant); and
b) directly result from the Defendant's negligence. In this context, the Defendant maintains that any negligence on their part has to be the "proximate and sole" cause of the loss before a finding can be made that the Defendant is liable for such property damage.
The Defendant contends that such a provision is reasonable in accordance with the Unfair Contract Terms Act 1977.
(a) Clause 6(c)
(b) "Directly Results From …"
"Accordingly, taking the view that I do, that Mr Justice Parker was right to hold that the word "consequential" does not cover any loss which directly and naturally results in the ordinary course of events from late delivery, I would dismiss the appeal."
In other words, Mr Crowley was submitting that the use of the word "directly" meant that liability for losses akin to those recoverable under the first limb of Hadley v Baxendale was being preserved.
(c) Clause 14(b)
(d) The Unfair Contract Terms Act 1977
"Where experienced businessmen representing substantial companies of equal bargaining power negotiated an agreement, they may be taken to be the best judges of the commercial fairness of the agreement which they have made; including the fairness of the terms of that agreement."
"The 1977 Act obviously plays a very important role in protecting vulnerable consumers from the effects of draconian contract terms. But I am less enthusiastic about its intrusion into contracts between commercial parties of equalling bargaining strength, who should generally be considered capable of being able to make contracts of their choosing and expect to be bound by their terms."
I respectfully share Tuckey LJ's lack of enthusiasm for intruding into contracts such as the present one, provided that the parties were of equal bargaining power and provided that the relevant term was known and/or capable of clear identification.
"A: We did not just pick them because they were our preferred supplier; they were the right supplier for the continued contract.
Q: For this contract?
A: Yes.
Q: Including all the terms that they had to offer?
A: Yes.
Q: They were the most acceptable that you could find?
A: Yes."
B6 Duty of Care
C. RELEVANT EVENTS BEFORE THE FIRE
C1 The Claimant's Premises
C2 The Mitsubishi Fork Lift Truck
C3 Familiarisation/Handover
"And you are quite happy with what Mr Martin from Jofson's had done and explained to you and the drivers?
A: Yes.
Q: No question marks left, you understood how to operate them, obviously practice would make people better but they could get use to these machines quite quickly, could they not?
A: Yes, basically a reach truck, yes. They are basically all the same."
C4 Mr Garbett
C5 The Defendant's Maintenance Regime
(a) General
(b) Particular SVR's
(c) Pattern or Isolated Incidents?
C6 Strides
D THE FIRE
D1 The Truck
"Q: The battery leads that you have seen in the photograph we looked at earlier would be easily long enough, would they not, to reach the fork lift truck?
A: Yes, they probably would, yes.
Q: You would not need an extension lead, would you?
A: No, I suppose."
"Q: Does it not then follow that if you have a incident of cable snagging in the mast, the probabilities are that the cable was not stowed properly in the first place?
A: That is a possibility, certainly.
Q: Probability?
A: I have not judged it as a probability. It is certainly a possibility. I believe that the conclusion cannot be drawn that because a cable fell out, it must have been, to use a better word, incorrectly stowed.
Q: We are not dealing with absolutes, we are looking at probabilities here; did you not realise that?
A: I did, I do.
Q: Well, will you address probabilities then? I will ask it again. Is not the probability that where you have a cable snagging incident, especially if they are relatively infrequent, that on that occasion, the cable was not properly stowed?
A: There is a higher probability that that is the case, yes."
D2 The Disabling of the Truck
"Was sufficiently well qualified to carry out the simple task of disconnecting the battery … the risks would have been the same whether Mr Blakemore or Mr Burrows undertook the work…"
D3 The First Call
"Tony Telford FO
1734 - forks down
2285- broken wires
Scrubber - won't pick up water"
"From my terminology, looking at that, broken wires, and looking at the other one with the forks down or that will not pick up water, the broken wires could have needed a loom or parts ordering that would have taken longer than getting hold of a pair of forks … you could get hold of forks quicker than you could get hold of a loom or any parts to do with wiring. You would normally have to order on a next day."
D4 Mr Burrows' Commitments
D5 The Later Calls
"I never promise an engineer on any day. You cannot promise an engineer, because you do not know what that engineer is doing at the time or how long his job that he is out on, which Simon was at the time, would take. So you can never promise to go that day. You would go as soon as possible."
"Q : ... It never occurred to you that the truck in that condition, left in that position, was a fire risk?
A: No
Q: That did not occur to you?
A: No
Q: In an ideal world, you wanted Jofsons' engineer to turn up and mend the whole thing so it was back available for use?
A: Correct."
D6 The Night Shift
D7 The Fire Itself
"The area of most severe damage was centred on a section of the palletised storage racking, and an accumulator battery powered fork lift truck, in the warehouse area … Patterns of fire damage indicate clearly that the incident originated in the vicinity of the fork lift truck."
"It is difficult to speculate on the exact cause of the fire that was detected by the fire alarm system at 0502 hours.
The fork lift truck had clearly been in position for many hours after it failed with no fire occurring.
It may be that a physical factor such as a draught from an open door caused a damaged conductor to short onto a metal component of the truck causing sparks or heat that ignited insulation or nearby packing materials.
It may be, although I consider it less likely, that wiring had been overheating for some 16 hours, since the original fault, before causing a fire capable of being detected by the smoke sensors."
D8 Aftermath
D9 The Other Two Trucks
E. LIABILITY/THE CABLES
E1 Did The Truck Comply With The Terms As To Quality?
(a) The History of the Truck
"Q: It follows from that, Mr A'Court, that so far as you were concerned you thought your fork lift trucks were perfectly safe; correct?
A: Yes.
Q: You had no occasion to complain about them?
A: If I did not think they were safe, I would have sounded warning bells.
Q: You did not think there was anything defective about them?
A: No."
(b) Their Safe Operation Elsewhere
(c) Cable Lengths Not Contrary To Any Recommendation Or Standard
(d) Clips/Restraints
(e) The Lower Lip
(f) Summary On Safety/Fitness For Purpose
E2 Did The Truck Comply With Any Duty Of Care?
E3 Duty To Warn
F. LIABILITY/FAMILIARISATION TRAINING
G. LIABILITY/NON-ATTENDANCE OF MR BURROWS
G1 The True Nature Of The Contractual Obligation
G2 Relevant Circumstances
(a) Stated Problem
(b) Stated Urgency
(c) Usual Procedure
(d) Mr Burrows' Other Commitments
G3 Summary
H. CAUSATION
H1 Introduction
H2 The Cause Of The Fire
(a) Damaged Cables
(b) Live Cables
(c) Summary
H3 What Moved The Cables?
H4 Summary On Causation
I. FORESEEABILITY
"This accident was caused by a known source of danger, but caused in a way which could not have been foreseen, and, in my judgment, that affords no defence."
J. CONTRIBUTORY NEGLIGENCE
K. DAMAGES
L. EVIDENCE IN FIRE CASES
L1 Contemporaneous Notes
"It is a truism, often used in accident cases, that with every day that passes the memory becomes fainter and the imagination becomes more active. For that reason a witness, however honest, rarely persuades a Judge that his present recollection is preferable to that which was taken down in writing immediately after the accident occurred."
L2 Role Of Fire Investigators
L3 Testing
"… It is imperative that, wherever possible, the parties' experts co-operate fully with one another. This is particularly important where tests, surveys, investigations, sample gathering or other technical methods of obtaining primary factual evidence are needed. It is often critical to ensure that any laboratory testing or experiments are carried out by the experts together, pursuant to an agreed procedure."
I respectfully agree with those sentiments.
M. CONCLUSIONS