Kingsway Hall Hotel Ltd. v Red Sky IT (Hounslow) Ltd.

Kingsway Hall Hotel Ltd. v Red Sky IT (Hounslow) Ltd.

Red Sky's exclusion and limitation clauses did not apply because operating documents were not supplied and Kingsway relied on Red Sky's recommendation. Even if they applied, the clauses were unreasonable under UCTA. The software was not fit for purpose or of satisfactory quality, entitling Kingsway to reject it and claim damages.

Parties
Claimant: Kingsway Hall Hotel Ltd; Defendant: Red Sky IT (Hounslow) Ltd
Jurisdiction
England and Wales
Judgment Date
06 May 2010
Procedural Posture
Civil / Judgment
Outcome
Judgment for the Claimant
Legal Topics
Implied Terms, Fitness for Purpose, Satisfactory Quality, Unfair Contract Terms, Damages, Exclusion Clauses, Supply of Goods and Services
Contract Law Commercial Law IT Law Implied Terms Fitness for Purpose Satisfactory Quality Unfair Contract Terms Damages +2 more

Case Brief

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Parties

Kingsway Hall Hotel Ltd

Claimant

Red Sky IT (Hounslow) Ltd

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the software supplied was of satisfactory quality and fit for purpose
  2. 2 Whether Red Sky's standard terms and conditions excluded implied terms under statute
  3. 3 Whether exclusion and limitation clauses were reasonable under the Unfair Contract Terms Act 1977

Ratio Decidendi

Red Sky's exclusion and limitation clauses did not apply because operating documents were not supplied and Kingsway relied on Red Sky's recommendation. Even if they applied, the clauses were unreasonable under UCTA. The software was not fit for purpose or of satisfactory quality, entitling Kingsway to reject it and claim damages.

Court Disposition

Judgment for the Claimant

Orders

  • Red Sky to pay Kingsway Hall Hotel Ltd £110,997.54 in damages
  • Red Sky's counterclaim dismissed except for credit of £1,031.25 for Kx software