Facts
Photo Productions Ltd sued Securicor Transport Ltd after Securicor's employee, Mr Musgrove, started a fire at Photo Production's factory to warm himself while at work and accidentally burnt it down, costing £615,000. Securicor argued that an exclusion clause in its contract meant they were not liable, as it said "under no circumstances be responsible for any injurious act or default by any employee… unless such act or default could have been foreseen and avoided by the exercise of due diligence on the part of ." Photo Productions argued that the clause could not apply under the doctrine of fundamental breach, that the breach of the contract went to the root of the contract and invalidated the whole agreement, and extinguished the exclusion clause.
Read more about this topic: Photo Production Ltd V Securicor Transport Ltd
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