Scheps v Fine Art Logistic Ltd

Scheps v Fine Art Logistic Ltd

The defendant's standard terms and conditions were not incorporated into the contract as they were never communicated to the claimant and there was no objective basis for the defendant to assume the claimant agreed to them. Even if incorporated, the limitation of liability would not have been fair and reasonable as it was not brought to the claimant's attention. The defendant wrongfully converted the claimant's sculpture, and damages are to be assessed at the market value at the date of conversion plus foreseeable consequential loss due to appreciation in value.

Parties
Claimant: Ofir Scheps; Defendant: Fine Art Logistic Limited
Jurisdiction
England and Wales
Judgment Date
16 March 2007
Procedural Posture
Civil / Judgment After Trial
Outcome
Judgment for the claimant
Legal Topics
Incorporation of Terms, Limitation of Liability, Conversion, Damages Assessment
Contract Law Tort Law Incorporation of Terms Limitation of Liability Conversion Damages Assessment

Case Brief

Summary, issues, holding and outcome

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Parties

Ofir Scheps

Claimant

Fine Art Logistic Limited

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether the defendant's standard terms and conditions limiting liability were incorporated into the contract
  2. 2 Whether the limitation of liability was fair and reasonable under the Unfair Contract Terms Act 1977 and/or Unfair Terms in Consumer Contracts Regulations 1999
  3. 3 Whether the defendant is liable for conversion of the claimant's sculpture

Ratio Decidendi

The defendant's standard terms and conditions were not incorporated into the contract as they were never communicated to the claimant and there was no objective basis for the defendant to assume the claimant agreed to them. Even if incorporated, the limitation of liability would not have been fair and reasonable as it was not brought to the claimant's attention. The defendant wrongfully converted the claimant's sculpture, and damages are to be assessed at the market value at the date of conversion plus foreseeable consequential loss due to appreciation in value.

Court Disposition

Judgment for the claimant

Orders

  • Defendant to pay the claimant £351,375 in damages, comprising £132,000 for the value of the sculpture at the date of loss and £219,375 for consequential loss due to appreciation in value.