Post Office & Anor v British World Airlines Ltd [2000] EWHC 204 (Comm) (11 January 2000)

Post Office & Anor v British World Airlines Ltd [2000] EWHC 204 (Comm) (11 January 2000)

BWA is liable under the contract to the Post Office for compensation paid to customers for lost mail, but only for sums paid as compensation and not for sums paid in lieu of insurance that should have been obtained. The contractual reference to Post Office schemes acts as a ceiling for compensation, not as a restriction to mail carried under schemes. The Warsaw Convention limitation does not further restrict liability between the parties. No alternative claim lies under the statutory regime where the contract governs liability.

Citation
[2000] EWHC 204 (Comm)
Parties
Claimant: Post Office; Defendant: BWA; Claimant Customer: Motorola; Claimant Customer: Burberrys; Claimant Customer: Wemyss Weavecraft; Claimant Customer: BT
Jurisdiction
England and Wales
Judgment Date
11 January 2000
Procedural Posture
Commercial Contract Dispute / Trial of Preliminary Issues
Outcome
Claim partially allowed
Legal Topics
Limitation of Liability, Carriage by Air, Compensation for Loss of Goods, Interpretation of Contracts, Statutory Immunity
Contract Law Aviation Law Insurance Law Limitation of Liability Carriage by Air Compensation for Loss of Goods Interpretation of Contracts Statutory Immunity

Case Brief

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Parties

Post Office

Claimant

BWA

Defendant

Motorola

Claimant Customer

Burberrys

Claimant Customer

Wemyss Weavecraft

Claimant Customer

BT

Claimant Customer

Procedural Posture

Commercial Contract Dispute / Trial of Preliminary Issues

Legal Issues

  1. 1 Whether BWA is liable under contract to Post Office for compensation paid to customers for lost mail
  2. 2 Whether BWA's liability is limited by Post Office schemes or by the Warsaw Convention
  3. 3 Whether Post Office can recover sums paid in lieu of insurance not obtained

Ratio Decidendi

BWA is liable under the contract to the Post Office for compensation paid to customers for lost mail, but only for sums paid as compensation and not for sums paid in lieu of insurance that should have been obtained. The contractual reference to Post Office schemes acts as a ceiling for compensation, not as a restriction to mail carried under schemes. The Warsaw Convention limitation does not further restrict liability between the parties. No alternative claim lies under the statutory regime where the contract governs liability.

Court Disposition

Claim partially allowed

Orders

  • Post Office not entitled to recover sums paid to Motorola, Burberrys, or Wemyss Weavecraft as these were paid in lieu of insurance.
  • Post Office may be entitled to recover sums paid to BT, subject to further factual clarification and per item limit.