EXCLUDING LIABILITY FOR INDIRECT, SPECIAL OR CONSEQUENTIAL LOSS

Pegler Limited v Wang (UK) Ltd [2000] BLR 218

In Pegler Limited v Wang (UK) Ltd [2000] BLR 218 Judge Bowsher QC considered the scope of s3 of the Unfair Contract Terms Act 1977 and the interpretation of an exclusion clause which purported to exclude liability for ‘any indirect, special or consequential loss, howsoever arising (including but not limited to loss of anticipated profits …).’ It was held that the claims brought were claims for damages under the first limb of Hadley v Baxendale (1854) 9 Exch 341 with the consequence that the exclusion clause was ineffective to exclude liability towards the claimants. When considering the scope of s3 of the Act Judge Bowsher QC held that it was not necessary for the whole of the contract to be ‘on the other’s written standard terms of business’ in order to bring the section into play.