Cosar Ltd v UPS Ltd [1998] ScotCS 11 (13 August 1998)

Cosar Ltd v UPS Ltd [1998] ScotCS 11 (13 August 1998)

The pursuers' averments are sufficiently specific and relevant to entitle them to inquiry on both the imputation of knowledge to the defenders and the recoverability of damages for loss of opportunity and, potentially, loss of profits. The defenders' limitation of liability clause does not apply in light of admitted negligence. The issue of whether the loss is direct or consequential and the precise scope of recoverable damages requires factual inquiry and cannot be determined at this stage.

Citation
[1998] ScotCS 11
Parties
Pursuer: Cosar Limited; Defender: UPS Limited
Jurisdiction
Scotland
Judgment Date
13 August 1998
Procedural Posture
Civil (breach of Contract) / Interlocutory (ruling on Relevancy and Scope of Proof Before Answer)
Outcome
Pursuers' claim for inquiry into damages allowed; defenders' plea of limitation of liability repelled insofar as based on contractual cap; case put out By Order for further determination of scope of proof.
Legal Topics
Remoteness of Damage, Limitation of Liability, Imputation of Knowledge, Damages for Breach of Contract, Consequential Loss
Contract Law Commercial Law Remoteness of Damage Limitation of Liability Imputation of Knowledge Damages for Breach of Contract Consequential Loss

Case Brief

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Parties

Cosar Limited

Pursuer

UPS Limited

Defender

Procedural Posture

Civil (breach of Contract) / Interlocutory (ruling on Relevancy and Scope of Proof Before Answer)

Legal Issues

  1. 1 Whether the pursuers' averments of specific damage are too remote to be recoverable at common law for breach of contract
  2. 2 Whether knowledge of employees can be imputed to the employer for the purposes of remoteness of damage
  3. 3 Whether the contractual limitation of liability clause applies in the circumstances, particularly in light of alleged negligence

Ratio Decidendi

The pursuers' averments are sufficiently specific and relevant to entitle them to inquiry on both the imputation of knowledge to the defenders and the recoverability of damages for loss of opportunity and, potentially, loss of profits. The defenders' limitation of liability clause does not apply in light of admitted negligence. The issue of whether the loss is direct or consequential and the precise scope of recoverable damages requires factual inquiry and cannot be determined at this stage.

Court Disposition

Pursuers' claim for inquiry into damages allowed; defenders' plea of limitation of liability repelled insofar as based on contractual cap; case put out By Order for further determination of scope of proof.

Orders

  • Repel defenders' fourth plea-in-law relating to contractual limitation of recoverable loss and damage.
  • Exclude from probation the sentences in defenders' pleadings asserting liability limited to £75.