I can see a possibility of success of the agency argument if (first) the bill of lading makes it clear that the stevedore is intended to be protected by the provisions in it which limit liability, (secondly) the bill of lading makes it clear that the carrier, in addition to contracting for these provisions on his own behalf, is also contracting as agent for the stevedore that these provisions should apply to the stevedore, (thirdly) the carrier has authority from the stevedore to do that, or perhaps later ratification by the stevedore would suffice, and (fourthly) that any difficulties about consideration moving from the stevedore were overcome. Facts. It was a test case in which it was sought to establish a basis upon which stevedores could claim the protection of exceptions and limitations contained in … It was a test case in which it was sought to establish a basis upon which stevedores could claim the protection of exceptions and limitations contained in a bill of lading contract to which they were not party. 9 Scruttons (n 7) Contract Law Essay 2012 : Privity of Contract pg. Privity doctrine affirmed by House of Lords. In the contract between the two parties there was a limitation of liability clause for $500 (£179) per box. Upholding contractual intentions : Lord Denning's dissent in Scruttons Ltd v Midland Silicones Ltd (1962) AC 446 / Catharine MacMillan --6. 2 The principal authorities for the present rule are Scruttons Ltd v Midland Silicones Ltd [1962] A.c. 446 (H.L. Case Information. This was because he considered the carriers to be the bailees of the respondents’ goods. Lord Denning therefore thought that the respondents were bound by the limitation clause in the contract between the carrier and the appellants. No Acts. 4 HL Deb vol 596 col 20-33 11 January 1999. Made contract of carriage with carriers. Clause (c) is perhaps the only real exception to this rule, very limited in its scope. Bailees can enter into contracts concerning the goods which bind their owners. The cargo was a drum of chemicals. There was no equivalent provision at the time this case was decided. Can.). 1. During the unloading process, they negligently dropped and damaged the drum, losing £593 worth of chemicals. CITATION CODES. Midland Silicones Ltd v Scruttons Ltd [1962] A.C. 446, HL applied. Overseas Tankship (UK) Ltd v Morts Dock and Engineering Co Ltd aka (Wagon Mound (No. Scruttons v Midland Silicones (1962) Uncategorized Legal Case Notes August 23, 2018 May 28, 2019. Claimants owned drum of chemicals. The leading authorities on the application of the doctrine of privity in the context of exemption clauses. 5 Smith and Snipes Hall Farm LD v River Douglas Catchment Board [1949] 2 KB 500, 514; Drive Yourself Hire Co v Strutt [1954] 1 QB 250, 272; Scruttons Ltd v Midland Silicones Ltd [1962] AC 446, 483; Beswick v Beswick [1966] Ch 538, 557. Lord Reid noted that there are three instances in which the House of Lords (now the Supreme Court) can depart from its ratio in previous cases: Lord Denning dissented. Scruttons Ltd v Midland Silicones Ltd [1961] UKHL 4, [1962] AC 446, is a leading House of Lords case on privity of contract.The Court outlined an exception to the privity rule, known as the Lord Reid test, through agency as it applies to sub-contractors and employees seeking protection in their employers' contract. Carriers contracted with stevedores to unload. Lord Reid proposed that the stevedores could be covered under the contractual clause through agency if certain pre-conditions were satisfied. 6. Horsfall 62 T.L.R. But the greatest difficulty in the way of the widow's right to sue personallyis that two cases in this House, Dunlop Pneumatic Tyre Co. v. Selfridgeand Co. [1915] AC 847 and Midland Silicones Ltd. v. Scruttons Ltd. [1962]A.C. 446 clearly accepted the principle that a third party cannot sue ona contract to which he was not a party. Nevertheless, the loading itself will usually be done by the carrier himself or by a third party stevedore; (see Scruttons Ltd v Midland Silicones Ltd and NZ Shipping Co Ltd v A M Satterthwaite & Co Ltd - The Eurymedon). Similarly, only a contract party can take advantage of any defences or limitations claimed within a contract. 5.Upholding Contractual Intentions Lord Denning's Dissent in Scruttons Ltd v Midland Silicones Ltd [1962] AC 446 / Catharine MacMillan 6.A Defence of Commercial Certainty in the Wake of Judicial Pragmatism Lord Bingham's Dissent in Golden Strait Corpn v Nippon Yusen Kubishika Kaisha (The Golden Victory) [2007] UKHL 12 / Christopher Monaghan Could the appellants take advantage of the limitation clause, despite apparently not being a party to the contract? Citations: [1962] AC 446; [1962] 2 WLR 186; [1962] 1 All ER 1; [1961] 2 Lloyd’s Rep 365; (1962) 106 SJ 34; [1962] CLY 2842. Citations: [1962] AC 446; [1962] 2 WLR 186; [1962] 1 All ER 1; [1961] 2 Lloyd’s Rep 365; (1962) 106 SJ 34; [1962] CLY 2842. Adler v. Dickson (The Himalaya), [1954] 2 Lloyd's Rep. 267, [1955] 1 Q.B. ); Midland Silicones Ltd v. Scruttons Ltd [1962] AC 446 HL [19] The Hague-Visby Rules - The Hague Rules as Amended by the Brussels Protocol 1968. Lord Denning also thought that the appellants could rely on the clause in their own contract with the carrier which entitled them to the same defences as the carrier. Scruttons Ltd v Midland Silicones United Kingdom House of Lords (6 Dec, 1961) 6 Dec, 1961; Subsequent References; Similar Judgments; Scruttons Ltd v Midland Silicones [1961] UKHL 4 [1962] AC 446. Worth of chemicals Ltd [ 1962 ] AC 446 is a party to a contract can! Leading House of Lords event of loss, damage or delay the context of clauses! V. Dickson ( the Himalaya ), [ 1954 ] 2 Lloyd 's Rep. 267, [ 1955 ] Q.B... Exclusion clause YL v Birmingham City Council [ 2007 ] UKHL 27 into contracts concerning the goods were in. Exclusion clause however, they claimed that they could take advantage of the carrier ’ s limitation,. 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scruttons ltd v midland silicones ltd 1962 ac 446 hl

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