John Moodie & Co & Ors v. Coastal Marine (Boatbuilders) Ltd [2002] ScotCS 263 (19 September 2002)

John Moodie & Co & Ors v. Coastal Marine (Boatbuilders) Ltd [2002] ScotCS 263 (19 September 2002)

Clause 12.7 operates as a general limitation of liability for consequential losses arising from breakdown or machinery failure, irrespective of the ground on which the claim is made, and is not restricted to claims under the guarantee provisions. Accordingly, claims for such losses are excluded from probation where they fall within the scope of the clause.

Citation
[2002] ScotCS 263
Parties
Pursuers: John Moodie & Co and Others; Defenders: Coastal Marine (Boatbuilders) Ltd
Jurisdiction
Scotland
Judgment Date
19 September 2002
Procedural Posture
Commercial Contract Dispute / Interlocutory Judgment on Relevancy and Construction of Limitation Clause
Outcome
Partial dismissal and exclusion of averments; proof before answer allowed on remaining issues.
Legal Topics
Limitation of Liability, Construction of Contract Terms, Supply of Goods and Services Act 1982, Consequential Loss Exclusion, Implied Terms
Contract Law Commercial Law Limitation of Liability Construction of Contract Terms Supply of Goods and Services Act 1982 Consequential Loss Exclusion Implied Terms

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Parties

John Moodie & Co and Others

Pursuers

Coastal Marine (Boatbuilders) Ltd

Defenders

Procedural Posture

Commercial Contract Dispute / Interlocutory Judgment on Relevancy and Construction of Limitation Clause

Legal Issues

  1. 1 Whether Clause 12.7 of the contract excludes liability for consequential losses irrespective of the basis of claim
  2. 2 Whether Clause 12.7 applies only to claims under the guarantee provisions or more broadly
  3. 3 Whether certain averments of loss are relevant in light of Clause 12.7

Ratio Decidendi

Clause 12.7 operates as a general limitation of liability for consequential losses arising from breakdown or machinery failure, irrespective of the ground on which the claim is made, and is not restricted to claims under the guarantee provisions. Accordingly, claims for such losses are excluded from probation where they fall within the scope of the clause.

Court Disposition

Partial dismissal and exclusion of averments; proof before answer allowed on remaining issues.

Orders

  • Exclude from probation the whole averments in articles 4 and 8 of the condescendence.
  • Exclude specified averments in article 9 and answer 7 as detailed in the judgment.