Alexander Stephen (Forth) Ltd v JJRiley (UK) Ltd [1976] ScotCS CSOH_4 (02 March 1976)

Alexander Stephen (Forth) Ltd v JJRiley (UK) Ltd [1976] ScotCS CSOH_4 (02 March 1976)

Condition 5 of the contract expressly applies to situations of fundamental breach and contract termination; there is no rule of law in Scotland preventing parties from limiting liability for fundamental breach if the contract so provides; the defenders' claim for damages except for defective workmanship is excluded from probation.

Citation
[1976] ScotCS CSOH_4
Parties
Pursuer: Alexander Stephen (Forth) Limited; Defender: J. J. Riley (U. K.) Limited
Jurisdiction
Scotland
Judgment Date
02 March 1976
Procedural Posture
Commercial Contract Dispute / Interlocutory Judgment on Exclusion Clauses and Probation of Averments
Outcome
Pursuers' motion sustained; defenders' claim for damages (except defective workmanship) excluded from probation; proof before answer allowed quoad ultra.
Legal Topics
Exclusion Clauses, Fundamental Breach, Material Breach, Damages, Probation of Averments
Contract Law Exclusion Clauses Fundamental Breach Material Breach Damages Probation of Averments

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Parties

Alexander Stephen (Forth) Limited

Pursuer

J. J. Riley (U. K.) Limited

Defender

Procedural Posture

Commercial Contract Dispute / Interlocutory Judgment on Exclusion Clauses and Probation of Averments

Legal Issues

  1. 1 Applicability of exclusion clauses to fundamental breaches of contract
  2. 2 Whether Condition 5 excludes liability for damages except defective workmanship
  3. 3 Effect of contract termination on exclusion clauses

Ratio Decidendi

Condition 5 of the contract expressly applies to situations of fundamental breach and contract termination; there is no rule of law in Scotland preventing parties from limiting liability for fundamental breach if the contract so provides; the defenders' claim for damages except for defective workmanship is excluded from probation.

Court Disposition

Pursuers' motion sustained; defenders' claim for damages (except defective workmanship) excluded from probation; proof before answer allowed quoad ultra.

Orders

  • Sustain pursuers' third plea-in-law to exclude from probation defenders' claim for damages except defective workmanship.
  • Exclude from probation pursuers' averments on Conditions 4(b) and (c).