London Drugs Ltd. v. Kuehne & Nagel International Ltd.

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London Drugs Ltd. v. Kuehne & Nagel International Ltd.

Supreme Court of Canada
Hearing: October 29, 1991
Judgment: October 29, 1992
Full case name: '
Citations: [1992] 3 S.C.R. 299
Docket No.: 21980
Court membership

Chief Justice: Antonio Lamer
Puisne Justices: Gérard La Forest, Claire L'Heureux-Dubé, John Sopinka, Charles Gonthier, Peter Cory, Beverley McLachlin, William Stevenson, Frank Iacobucci
Reasons given

Majority by: Iacobucci J.
Concurrence by: McLachlin J.
Concurrence/dissent by: La Forest J.

London Drugs Ltd. v. Kuehne & Nagel International Ltd., [1992] 3 S.C.R. 299 is a leading decision of the Supreme Court of Canada on privity of contract.

Contents

[edit] Background

Kuehne & Nagel was storing a transformer owned by London Drugs valued at $32,000. The agreement between the parties included a limitation of liability clause which limited liability for damage to the transformer to $40. Two employees were moving the transformer with a forklift and negligently dropped it.

London Drugs sued the two employees on the basis that they owed a separate duty of care and could not seek protection under the contract.

[edit] Decision of the Supreme Court of Canada

Justice Iacobucci, writing for the majority, dismissed the appeal. The court held that the employees were liable in negligence but were able to gain protection under the contract. Employees are able to gain protection where "(1) the limitation of liability clause must, either expressly or impliedly, extend its benefit to the employee(s) seeking to rely on it; and (2) the employee(s) seeking the benefit of the limitation of liability clause must have been acting in the course of their employment and must have been performing the very services provided for in the contract between their employer and the plaintiff when the loss occurred."

[edit] See also

[edit] External links

  • Full text of Supreme Court of Canada decision at LexUMand CanLII