O'Brien v MGN Ltd

Last updated

O'Brien v MGN Ltd
Royal Coat of Arms of the United Kingdom.svg
Court Court of Appeal of England and Wales
Full case nameLee Headley O'Brien v MGN Limited
DecidedAugust 1, 2001 (2001-08-01)
Citation(s) [2001] EWCA Civ 1279
Court membership
Judge(s) sittingPotter LJ, Hale LJ, Anthony Evans
Keywords
Reasonable notice, incorporation

O'Brien v MGN Ltd [2001] EWCA Civ 1279 is an English contract law case, concerning incorporation of terms through reasonable notice.

Contents

Facts

The defendant put scratchcards with its newspapers-- Daily Mirror , Sunday Mirror and The People . If the card came up with money, players called a premium rate number to see if the amount matched a mystery bonus cash amount. Mr O'Brien on 3 July 1995 got two sums of £50,000. 1472 other people did as well, because MGN had distributed too many by mistake. MGN had only intended to have one prize of £50,000. MGN held a draw among the 1472. MGN pointed to "Rule 5", which said there would be a draw where more prizes were claimed than available. Rule 5, however, although published in some newspapers, was not to be found in the 3 July 1995 edition. This only said "Normal Mirror Group rules apply." Mr O'Brien had seen that. The question was whether Rule 5 was incorporated into the scratchcard agreement.

Judgment

Hale LJ held that Rule 5 was incorporated. She noted that Rule 5 was no great burden on the claimant, as in Interfoto, nor excluding liability for injury like Thornton, but simply deprived a windfall. [1] She also noted that in the test for incorporation, the words "onerous or unusual" are not "terms of art". [2] Potter LJ concurred with Hale LJ.

Sir Anthony Evans was doubtful that judge's reasons were right and thought the rule was onerous enough to require more notice.

See also

Notes

  1. [2001] EWCA Civ 1279, [21]
  2. [2001] EWCA Civ 1279, [23]

Related Research Articles

In contract law, ticket cases are a series of cases that stand for the proposition that if you are handed a ticket or another document with terms, and you retain the ticket or document, then you are bound by those terms. Whether you have read the terms or not is irrelevant, and in a sense, using the ticket is analogous to signing the document. This issue is an important one due to the proliferation of exclusion clauses that accompany tickets in everyday transactions.

<i>Macmillan Inc v Bishopsgate Investment Trust plc (No 3)</i>

Macmillan Inc v Bishopsgate Investment Trust plc [1995] EWCA Civ 55, [1996] WLR 387 is a judicial decision relating to English trusts law and conflict of laws case from the Court of Appeal. The issue arose in relation to frauds conducted by the late Robert Maxwell.

Sir Patrick Elias, PC, is a retired Lord Justice of Appeal.

Thornton v Shoe Lane Parking Ltd[1970] EWCA Civ 2 is a leading English contract law case. It provides a good example of the rule that a clause cannot be incorporated after a contract has been concluded, without reasonable notice before. Also, it was held that an automatic ticket machine was an offer, rather than an invitation to treat.

<span class="mw-page-title-main">English contract law</span> Law of contracts in England and Wales

English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth, from membership in the European Union, continuing membership in Unidroit, and to a lesser extent the United States. Any agreement that is enforceable in court is a contract. A contract is a voluntary obligation, contrasting to the duty to not violate others rights in tort or unjust enrichment. English law places a high value on ensuring people have truly consented to the deals that bind them in court, so long as they comply with statutory and human rights.

<i>Campbell v MGN Ltd</i> 2004 House of Lords decision on privacy in English law

Campbell v Mirror Group Newspapers Ltd[2004] UKHL 22 was a House of Lords decision regarding human rights and privacy in English law.

<i>Hollier v Rambler Motors (AMC) Ltd</i>

Hollier v Rambler Motors (AMC) Ltd[1971] EWCA Civ 12 is an English contract law case, concerning the incorporation of terms into a contract and the contra proferentum rule of interpretation. It shows an example of a very hostile interpretation of exclusion clauses.

<i>Chapelton v Barry UDC</i>

Chapelton v Barry Urban District Council [1940] 1 KB 532, the "deckchair case", is an English contract law case on offer and acceptance and exclusion clauses. It stands for the proposition that a display of goods can be an offer and a whole offer, rather than an invitation to treat, and serves as an example for how onerous exclusion clauses can be deemed to not be incorporated in a contract.

<i>Interfoto Picture Library Ltd v Stiletto Visual Programmes Ltd</i>

Interfoto Picture Library Ltd v Stiletto Visual Programmes Ltd [1987] EWCA Civ 6 is an English contract law case on onerous clauses and the rule of common law that reasonable notice of them must be given to a contracting party in order that they be effective. It also addressed, but did not decide, the position of onerous clauses as disguised penalties.

<span class="mw-page-title-main">Law of Property (Miscellaneous Provisions) Act 1989</span> United Kingdom legislation

The Law of Property Act 1989 is a United Kingdom Act of Parliament, which laid down a number of significant revisions to English property law.

<i>Liverpool City Council v Irwin</i>

Liverpool City Council v Irwin [1976] UKHL 1 is a leading English contract law case concerning the basis on which courts may imply terms into contracts; in particular in relation to all types of tenancies, a term may be implied if required for a particular relationship, such as for the landlord to keep the stairwells clear in a tower block. The tenants also had a duty of reasonable care which some among them had been repeatedly breached and led to a continuing breach in matters of damage about which they complained so they were not entitled to withhold rent on the facts.

Privacy in English law is a rapidly developing area of English law that considers situations where individuals have a legal right to informational privacy - the protection of personal or private information from misuse or unauthorized disclosure. Privacy law is distinct from those laws such as trespass or assault that are designed to protect physical privacy. Such laws are generally considered as part of criminal law or the law of tort. Historically, English common law has recognized no general right or tort of privacy, and offered only limited protection through the doctrine of breach of confidence and a "piecemeal" collection of related legislation on topics like harassment and data protection. The introduction of the Human Rights Act 1998 incorporated into English law the European Convention on Human Rights. Article 8.1 of the ECHR provided an explicit right to respect for a private life. The Convention also requires the judiciary to "have regard" to the Convention in developing the common law.

Illegality in English law is a potential ground in English contract law, tort, trusts or UK company law for a court to refuse to enforce an obligation. The illegality of a transaction, either because of public policy under the common law, or because of legislation, potentially means no action directly concerning the deal will be heard by the courts. The doctrine is reminiscent of the Latin phrase "Ex turpi causa non oritur actio", meaning "no cause of action arises from a wrong". The primary problem arising when courts refuse to enforce an agreement is the extent to which an innocent party may recover any property already conveyed through the transaction. Hence, illegality raises important questions for English unjust enrichment law.

An employment contract in English law is a specific kind of contract whereby one person performs work under the direction of another. The two main features of a contract is that work is exchanged for a wage, and that one party stands in a relationship of relative dependence, or inequality of bargaining power. On this basis, statute, and to some extent the common law, requires that compulsory rights are enforceable against the employer.

<i>Das v Linden Mews Ltd</i>

Das v Linden Mews Ltd[2002] EWCA Civ 590 is an English land law case, concerning rights of way.

<i>Green v Lord Somerleyton</i>

Green v Lord Somerleyton is an English land law and tort law case, concerning easements of surface water/ditch drainage and the tests for nuisance in English law. In this case there was no remedy for the flooding found to be natural and not recently exacerbated by the defendant. The court attached to the properties an old, 1921, easement of drainage passing both land holdings, in this case two common examples of lowland water engineering, dykes controlled against tides by one-way valves, mentioned in the properties' deeds and, duplicatively, established the right by prescription. The dykes lay in the claimant's own land who had failed to maintain them and failed to account for the flows caused by reduction of water extraction from the lake upstream. The claimant had failed to repair the pump and clear ditches on his own land which had been agreed between the previous owners to give channelled drainage from a lake above. It was for the claimant to recognise the danger posed by its waterline being raised in 1954 by the building up of a weir.

<i>Thompson v London, Midland and Scottish Rly Co</i>

Thompson v London, Midland and Scottish Railway Co Ltd [1930] 1 KB 41 is an English contract law case, concerning the exclusion of liability. It was described by Lord Denning MR in George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd as part of "a bleak winter for our law of contract." Although the same decision would not be reached today because of the application of the Unfair Contract Terms Act 1977, English courts continue to assess on an objective basis whether reasonable notice has been given of terms and conditions so as to incorporate them in the contract.

<span class="mw-page-title-main">Penalties in English law</span>

Penalties in English law are contractual terms which are not enforceable in the courts because of their penal character. Since at least 1720 it has been accepted as a matter of English contract law that if a provision in a contract constitutes a penalty, then that provision is unenforceable by the parties. However, the test for what constitutes a penalty has evolved over time. The Supreme Court most recently restated the law in relation to contractual penalties in the co-joined appeals of Cavendish Square Holding BV v Talal El Makdessi, and ParkingEye Ltd v Beavis.