Thompson v T Lohan (Plant Hire) Ltd

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Thompson v T Lohan (Plant Hire) Ltd
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Court Court of Appeal
Citation(s)[1987] 2 All ER 631
Court membership
Judge(s) sitting Fox LJ
Keywords
Unfair terms

Thompson v T Lohan (Plant Hire) Ltd [1987] 2 All ER 631 is an English contract law case on the Unfair Contract Terms Act 1977.

Contents

It is usually read with Phillips Products Ltd v Hyland and Hamstead Plant Hire Co Ltd [1] where a similar contract clause (an older version of the same standard industry term) was held to be unreasonable, but where the liability being shifted had the effect of leaving a victim of loss without a remedy. In Thompson there was no exclusion of liability to the victim of the accident.

Facts

T Lohan hired out a JCB excavator and driver, Mr Hill, to JW Hurdiss Ltd, the owners of a quarry. Condition 8 of the contract said the driver was employed by JW Hurdiss Ltd. The driver caused Mr Thompson’s death. Mrs Thompson got damages from T Lohan for her husband's life. T Lohan sought to recover the cost of compensation from JW Hurdiss Ltd. JW Hurdiss argued that condition 8 was caught by UCTA 1977 section 2(1).

Judgment

Fox LJ held that condition 8 was not caught by UCTA 1977 and was effective to transfer liability to the hirers. Section 2(1) had no effect because liability was not excluded towards the victim of the negligent act, Mr Thompson. It only excluded liability towards T Lohan themselves. It transferred liability. This distinguished the case from Phillips Products Ltd v Hyland and Hamstead Plant Hire Co Ltd . [2] So there is a distinction between an exclusion and transfer of liability. In particular he noted the following.

See also

Notes

  1. [1987] 2 All ER 620
  2. [1987] 2 All ER 620

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