Case Summery -: Harbutt's Plasticine Ltd v. Wayne Tank & Pump Co Ltd [1970] 1QB 447*_

Ayesha Sewwandi

Faculty of Law

University of Peradeniya

CASE : _*Harbutt's Plasticine Ltd v. Wayne Tank & Pump Co Ltd [1970] 1QB 447*_ *FACTS* : A contract was entered into for design & installation of storage tanks for stearing. A greasy wax that is one of main ingredients of the Plasticine. A plastic pipeline was designed by the contractors as a part of the contract. They wrapped the plastic pipeline with electrical heating tape. The pipeline was to be used to liquefy the stearine to convey it from one point to another point. The plastic pipe became distorted under the heat. It sagged & cracked. The stearing escape & became ignited. The plaintiff's factory was completely gutted by the fire.

*JUDGMENT* : The trial judge concluded that the contractor was in fundamental breach of contract. The contract contained a provision that limited the contractor's liability for accidents & damages to 2,300 pounds. The Court of Appeal held that, the contractors were not entitled to rely on the liability-limiting provision because of the fundamental breach. The contractors were held liable for the cost of reinstating the factory, an amount decided at trial to be in excess of 170,000 pounds. ★ Important Principle - In the event of a fundamental breach, that is a breach of a nature as to go to the root of contract, an exemption clause in a contract would not afford protection to the party that committed the fundamental breach. ★ The judgment of this case was unanimously overruled by the House of Lords in the case of Photo Production Ltd v. Securicor Transport Ltd [1980] 1 AII ER 556. ReplyForward