Tornado Wire Limited v John Good Logistics Limited

Tornado Wire Limited v John Good Logistics Limited

The application for summary judgment or strike out is dismissed because there is a real prospect of success for the claimant on the issue of reasonableness of clause 27(B) under UCTA. The clause may be unreasonable in the specific circumstances, as the claimant could not have known of the breach within nine months, and the parties were not of equal bargaining power. The facts warrant a full trial.

Parties
Claimant: Tornado Wire Limited; Defendant: John Good Logistics Limited
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Commercial Claim for Damages / Ruling on Defendant's Application for Summary Judgment or Strike Out
Outcome
Application for summary judgment and strike out dismissed.
Legal Topics
Contractual Limitation Clauses, Reasonableness Under UCTA, Breach of Contract, Negligence, Summary Judgment, Strike Out Applications
Contract Law Negligence Commercial Law Contractual Limitation Clauses Reasonableness Under UCTA Breach of Contract Summary Judgment Strike Out Applications

Case Brief

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Parties

Tornado Wire Limited

Claimant

John Good Logistics Limited

Defendant

Procedural Posture

Commercial Claim for Damages / Ruling on Defendant's Application for Summary Judgment or Strike Out

Legal Issues

  1. 1 Whether the claim is time-barred by clause 27(B) of BIFA STC 2017
  2. 2 Whether clause 27(B) is reasonable under the Unfair Contract Terms Act 1977
  3. 3 Whether the nine-month limitation period applies to claims not known within that period

Ratio Decidendi

The application for summary judgment or strike out is dismissed because there is a real prospect of success for the claimant on the issue of reasonableness of clause 27(B) under UCTA. The clause may be unreasonable in the specific circumstances, as the claimant could not have known of the breach within nine months, and the parties were not of equal bargaining power. The facts warrant a full trial.

Court Disposition

Application for summary judgment and strike out dismissed.

Orders

  • Parties to agree directions for service of Defence and Reply.
  • Parties to identify dates for a Case Management Conference in April-June 2024.