J Spurling Ltd v Bradshaw
Encyclopedia
J Spurling Ltd v Bradshaw [1956] EWCA Civ 3 is an English contract law
and English property law
case on exclusion clauses and bailment. It is best known for Denning LJ's red hand rule comment where he said,
. He asked Spurling Ltd to store them. In the contract was the "London lighterage clause" which exempted warehousemen from liability due to their negligence. When the barrels were collected, they were damaged. When Bradshaw refused to pay Spurling Ltd, the company sued for the cost. Bradshaw counterclaimed for damages for breach of an implied term of a contract of bailment to take reasonable care.
, Morris
and Parker LJ
held that although the warehouse employees were negligent, the clause effectively exempted them. Denning LJ's judgment went as follows. Note that his reference to the concept of a fundamental breach
precluding an exclusion of liability was rejected by the House of Lords some years later in Photo Production Ltd v Securicor Transport Ltd [1980] AC 827.
English contract law
English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...
and English property law
English property law
English property law refers to the law of acquisition, sharing and protection of wealth in England and Wales. Property law can refer to many things, and covers many areas. Property in land is the domain of the law of real property. The law of personal property is particularly important for...
case on exclusion clauses and bailment. It is best known for Denning LJ's red hand rule comment where he said,
Facts
J Spurling Ltd had a warehouse in East London. Mr Andrew Bradshaw had eight barrels of orange juiceOrange juice
Orange juice is a popular beverage made from oranges. It is made by extraction from the fresh fruit, by desiccation and subsequent reconstitution of dried juice, or by concentration of the juice and the subsequent addition of water to the concentrate...
. He asked Spurling Ltd to store them. In the contract was the "London lighterage clause" which exempted warehousemen from liability due to their negligence. When the barrels were collected, they were damaged. When Bradshaw refused to pay Spurling Ltd, the company sued for the cost. Bradshaw counterclaimed for damages for breach of an implied term of a contract of bailment to take reasonable care.
Judgment
DenningAlfred Denning, Baron Denning
Alfred Thompson "Tom" Denning, Baron Denning, OM, PC, DL, KC , commonly known as Lord Denning, was a British soldier, mathematician, lawyer and judge. He gained degrees in mathematics and law at Oxford University, although his studies were disrupted by his service in the First World War...
, Morris
John Morris, Baron Morris of Borth-y-Gest
John William Morris, Baron Morris of Borth-y-Gest CH, PC, MC was a British judge.In 1914, with the beginning of the First World War, Morris served in the Royal Welsh Fusiliers until its end...
and Parker LJ
Hubert Parker, Baron Parker of Waddington
Hubert Lister Parker, Baron Parker of Waddington PC was a British Judge who served as Lord Chief Justice of England from 1958 to 1971...
held that although the warehouse employees were negligent, the clause effectively exempted them. Denning LJ's judgment went as follows. Note that his reference to the concept of a fundamental breach
Fundamental breach
A fundamental breach of a contract, sometimes known as a repudiatory breach, is a breach so fundamental that it permits the distressed party to terminate performance of the contract, in addition to entitling that party to sue for damages.-History:...
precluding an exclusion of liability was rejected by the House of Lords some years later in Photo Production Ltd v Securicor Transport Ltd [1980] AC 827.