_ltd.gif)
Hollier v Rambler Motors (AMC) Ltd
Encyclopedia
Hollier v Rambler Motors (AMC) Ltd [1972] 2 QB 71 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.
car for garage repairs. He had been to this garage on three or four occasions in the past five years before, and he had usually signed an invoice which said the
He did not sign the form on this occasion. Unfortunately, some wiring in the garage was faulty. Rambler Motors Ltd had negligently failed to inspect or maintain it. A fire broke out and burnt down the garage, with Mr Hollier's car in it. Mr Hollier sued Rambler Motors Ltd for the cost of his car.
He refers to Scrutton LJ in Rutter v Palmer [1922] 2 KB 87 saying a clear clause excluding negligence liability "will more readily operate to exempt him." Also, in Alderslade v. Hendon Laundary Ltd [1945] KB 189, Lord Greene MR was not seeking to extend the law, and here was quite different, because the reasonable person would see a number of other causes of fire. It would surprise an ordinary person if it applied to a fire caused by the garage’s own negligence (rather than an external cause). If they wanted to make exclusions for their own negligence ‘they ought to have done so in far plainer language’.
English contract law
English contract law is a body of law regulating contracts 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 , and the United States...
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.
Facts
Walter Hollier took his RamblerRambler (automobile)
Rambler was an automobile brand name used by the Thomas B. Jeffery Company between 1900 and 1914, then by its successor, Nash Motors from 1950 to 1954, and finally by Nash's successor, American Motors Corporation from 1954 to 1969...
car for garage repairs. He had been to this garage on three or four occasions in the past five years before, and he had usually signed an invoice which said the
"company is not responsible for damage caused by fire to customers’ cars on the premises."
He did not sign the form on this occasion. Unfortunately, some wiring in the garage was faulty. Rambler Motors Ltd had negligently failed to inspect or maintain it. A fire broke out and burnt down the garage, with Mr Hollier's car in it. Mr Hollier sued Rambler Motors Ltd for the cost of his car.
Judgment
The Court of Appeal held that a previous course of dealing did not incorporate the term, because there was neither a regular nor consistent course of dealings. It went on to ask what would have happened were it incorporated, and held that the exclusion clause would still not have been effective to save Rambler Motors Ltd for liability, because it should be construed against the person relying on it (contra proferentum) and this clause covered more than negligence. A reasonable person would think liability for other things beyond the garage's own control would be excluded, but not the garage's own fault. Salmon LJ observed the following.He refers to Scrutton LJ in Rutter v Palmer [1922] 2 KB 87 saying a clear clause excluding negligence liability "will more readily operate to exempt him." Also, in Alderslade v. Hendon Laundary Ltd [1945] KB 189, Lord Greene MR was not seeking to extend the law, and here was quite different, because the reasonable person would see a number of other causes of fire. It would surprise an ordinary person if it applied to a fire caused by the garage’s own negligence (rather than an external cause). If they wanted to make exclusions for their own negligence ‘they ought to have done so in far plainer language’.
See also
- Canada Steamship Lines Ltd v The King [1952] AC 192
- Photo Production Ltd v Securicor Transport Ltd [1980] AC 827