Sources
Help build the largest human-edited directory on the web.
Submit a site - Become an editor
Wikipedia. Licensed under the GNU Free Documentation License.
Are you an expert in this subject? Join the discussion and share your knowledge at Wikipedia.org.
London Drugs Ltd. v. Kuehne & Nagel International Ltd.
From Wikipedia, the free encyclopedia
London Drugs Ltd. v. Kuehne & Nagel International Ltd., [1992] 3 S.C.R. 299 is a leading decision of the Supreme Court of Canada on privity of contract.
Contents |
Kuehne & Nagel was storing a transformer owned by London Drugs valued at $32,000. The argreement between the parties included a limitation of liability clause which limited liability for damage to the transformer to $40. Two employees were moving the transformer with a forklift and negligently dropped it.
London Drugs sued the two employees on basis that they owed a separate duty of care and could not seek protection under the contract.
Justice Iacobucci, writing for the majority, dismissed the appeal. The court held that the employees were liable in negligence but were able to gain protection under the contract. Employees are able to gain protection where "(1) the limitation of liability clause must, either expressly or impliedly, extend its benefit to the employee(s) seeking to rely on it; and (2) the employee(s) seeking the benefit of the limitation of liability clause must have been acting in the course of their employment and must have been performing the very services provided for in the contract between their employer and the plaintiff when the loss occurred."