Case Law Update: Excluding liability in Terms of Business

Dispute Resolution - 1 minute read

The Court in a recent case has examined the enforceability of Terms of Business which attempted to exclude or restrict liability. It was held that none of the clauses were reasonable, and the Defendant business was not able to rely on these, and had to pay compensation to the Claimant.

A helpful reminder that just because your Terms might sound fantastic and make you feel safe from claims for defects or other breaches, the Court will apply a reasonable test to those terms, and will look at the relative bargaining powers of the parties.

Case: Saint Gobain Building Distribution Limited (t/a International Decorative Surfaces) v Hillmead Joinery (Swindon) Limited [2015] EWHC B7 (TCC)

The court examined each set of exclusions or restrictions and decided none were reasonable; and the customer was entitled to full compensation.