Exclusion clauses, Fundamental breach She considers two options the court has: 1. adopt strict construction entirely (Photo Production Ltd. v Securicor Transport Ltd.) which would discard the concept of fundamental breach, or 2. adopt a reasonableness approach. Termination discharges both parties from future performance As the gearboxes in this case were repairable, this was not a fundamental breach. Photo Production Ltd. v Securicor Transport Ltd. [1980] AC 827. e.g. Wilberforce explicitly rejected Denning's application of the doctrine of fundamental breach and opted for a "rule of construction" approach. Photo Productions argued that the clause could apply under the doctrine of fundamental breach; that the breach of the contract went to the root of the contract and invalidated the whole agreement, and extinguished the exclusion clause. Lord Wilberforce in this case affirmed that there is no such doctrine in English law. Lord Wilberforce 'My Lords, this appeal arises from the destruction by fire of a factory owned by the respondents ('Photo Productions') involving loss and damage agreed to amount to £615,000. 556, referred to. The plaintiff, Photo Productions Ltd entered into the contract with defendant Securicor Transport Ltd. One of the employee of Respondent Musgrove started a fire at Photo Production's factory to make himself warm while on duty but he accidentally burnt whole factory including stock worth £615,000. The defendants attempted to rely on the exclusion clauses. The claimant sued for £648,000 for breach of contract and negligence. Freedom of contract trumps any other considerations. 4 Photo Production Ltd v Securicor Transport Ltd, 1980 AC 827. Photo Productions Ltd sued Securicor Transport Ltd after Securicor's employee, Mr Musgrove, started a fire at Photo Production's factory to warm himself while at work and accidentally burnt it down, costing £615,000. Lords Wilberforce, Diplock, Salmon, Keith of Kinkel, and Scarman Court photo production ltd v securicor transport Termination is a self help remedy - Party can end the contract without going to court. He noted "the reports are full of cases in which what would appear to be very strained constructions have been placed upon exclusion clauses" though the need should have gone since the passage of the Unfair Contract Terms Act of 1977. unless such act or default could have been foreseen and avoided by the exercise of due diligence on the part of [Securicor]." The specifications were provided by Syncrude, but Hunter designed the gearboxes. Exempting Liability for Fundamental Breach Irish cases This doctrine meant that if a contract was terminated because of a repudiatory breach, the parties’ ability to rely on any exclusion or limitation clauses terminated also. Photo Production Ltd v Securicor Transport Ltd UKHL 2 (14 February 1980) Practical Law Case Page D-000-5794 (Approx. Key Case Photo Production Ltd v Securicor Transport Ltd (1980) Facts: The plaintiffs owned a factory, and engaged the defendants to provide security services, which included a night patrol. He lost control of the fire, which burned down the factory. Syncrude ordered 32 mining gearboxes from Hunter which were fabricated by a subcontractor. Requirement 3 - The clause must not be rendered unenforceable by statutory provisions There are various statutory provisions which prevent the effect of certain exclusion clauses. CASE LAW FUNDAMENTAL BREACH AND THE NATURE OF EXCLUSION CLAUSES PHOTO PRODUCTION LTD. v. SECURlCOR TRANSPORT LTD.' Introduction During the 1950s and early 1960s a body of law developed in England known as the "doctrine of fundamental breach". Photo Production Ltd v Securicor Transport Ltd UKHL 2 is an English contract law case decided by the House of Lords on construction of a contract and the doctrine of fundamental breach. One of the defendant’s employees started a small fire. The main purpose of the patrol was to avoid fire and theft. https://casebrief.fandom.com/wiki/Photo_Production_Ltd._v_Securicor_Transport_Ltd.?oldid=11460. I. Citation Judges Course. Read the case of Photo Production Ltd v Securicor Transport Ltd [1980] AC 827 Identify Lord Wilberforce’s reasons for reversing the Court of Appeal’s decision and ruling for … Key Case Photo Production Ltd v Securicor Transport Ltd (1980) Facts: The plaintiffs owned a factory, and engaged the defendants to provide security services, which included a night patrol. Photo Production Ltd v Securicor Transport P/L [1980] AC 827 text 155 Facts: S had a K with P to provide night patrol of P’s factory. ... Photo Production Ltd v Securicor Transport Ltd; R. R v Registrar General, ex p Segerdal; Re Barleycorn Enterprises Ltd; He noted that the doctrine had previously mitigated against injustices. Requirement 3 - The clause must not be rendered unenforceable by statutory provisions There are various statutory provisions which prevent the effect of certain exclusion clauses. 1129; Damon Campania Naviera S.A. v. Hapag-Lloyd International S.A. [1985] 1 W.L.R. Onus is then on the other party to challenge the termination by going to court. Despite some reluctance by Lord Denning to absorb the new ruling in Photo Production v Securicor 1980, the House of Lords upheld and approved its earlier decision, thereby signalling the decline of the doctrine of "fundamental breach" Unfair Contract Terms Act 1977 Photo Production Ltd v Securicor Transport LtdUKHL 2is an English contract lawcase decided by the House of Lordson construction of a contract and the doctrine of fundamental breach. This was not necessary in this case, because the wording of the clause was clear. A fundamental breach of the contract refers to a breach of the purpose or key term of the contract - Photo Production Ltd v Securicor Transport Ltd AC 827. Photo Productions argued that the clause coul… Photo Production Ltd v Securicor Transport Ltd [1980] AC 827 Facts: D's employee worked at P's factory, employee started fire to keep warm on night shift & accidentally caused £615 000 damage to factory Appellants Law of Contract (LAW241A) Uploaded by. Palmer [1922] 2 K.B. In-text: (Photo Production Ltd v Securicor Transport Ltd: HL 14 Feb 1980 - swarb.co.uk, 2015) Your Bibliography: swarb.co.uk. The appellants had met their duty of care by not hiring negligently. See Photo Production Ltd v Securicor Transport Ltd [1980] AC 827 at 849; Lombard North Central plc v Butterworth [1987] QB 527 at 535 and 545-546 PRACTICE NOTE 1. Billyack v Leyland Construction Co Ltd [1968] 1 WLR 471; Photo Production Ltd v Securicor Transport Ltd [1980] 1 All ER 556 and HW Nevill (Sunblest) v William Press & Sun [1981] 20 BLR 78. 1980 Suisse Atlantique Société d’Armement Maritime SA v. N.V. Rotterdamsche Kolen Centrale, [1967] 1 A.C. 361; Photo Production Ltd. v. Securicor Transport Ltd., [1980] 1 All E.R. PHOTO PRODUCTION LIMITED (RESPONDENTS) v. SECURICOR TRANSPORT LIMITED (APPELLANTS) Lord Wilberforce Lord Diplock Lord Salmon Lord Keith of Kinkel Lord Scarman Lord Wilberforce MY LORDS, This appeal arises from the destruction by fire of the respondents’ factory involving loss and damage agreed to amount to £615,000. 1129; Damon Campania Naviera S.A. v. Hapag-Lloyd International S.A. [1985] 1 W.L.R. The second contract, between Syncrude and Allis-Chambers, was for the supply of an extraction conveyor system and included four extraction gearboxes to drive the machinery. Denning, at the Court of Appeal, held that the doctrine of fundamental breach did apply as in Karsales (Harrow) Ltd. v Wallis and Securicor was liable, which they appealed. House of Lords The facts are set out in the judgement of Lord Wilberforce. of the litigation in Photo Production Ltd. v. Securicor Transport Ltd.4 The facts were as follows. He went out of his way to disapprove the doctrine of fundamental breach of contract. ISSUES: The issue, in this case, was whether the doctrine of fundamental breach applied and was relevant, and whether an exclusion clause could be effective on the facts of this case or not. The following discussion will proceed in three stages: (I) a brief assess-ment of Photo Production; (2) an assessment of several Canadian decisions in which Photo Production was applied or considered; and (3) a restatement of the issue derived from the case discussions. Inleiding Het Engelse recht heeft, evenals het Nederlandse recht, methoden ontwikkeld om … This case notes the contra proferentem rule. Did the facts of this case fall within the scope of the exclusion clause. the House of Lords in Photo Production Ltd. v Securicor Transport Ltd.,7 for in this case the House of Lords has unanimously overruled the heretical rule, first given decisional effect in Harbutt's Plasticine Ltd. v Wayne Tank and Pump Co. Ltd.," that an exception clause ceases to have effect when the Securicor Transport Ltd. A list by chronology with brief descriptions of each can be found here: List of cases involving Lord Denning. Photo Production Ltd V Securicor Transport Ltd: HL 14 Feb 1980 - Swarb.Co.Uk . Photo Production Ltd V Securicor Transport Ltd: HL 14 Feb 1980 - Swarb.Co.Uk . Exempting Liability for Fundamental Breach Irish cases Lords Wilberforce, Diplock, Salmon, Keith of Kinkel, and Scarman. 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