Exclusion clauses are like a security blanket... with a loose thread

Exclusion clauses are tricky things. Like a security blanket they appear to give great comfort but a recent court decision is a good reminder that having a well drafted clause sometimes doesn't get you very far.

The facts

J-Can Transport Services was engaged by Nudrill to transport a drilling rig from Perth to Kalgoorlie. Sounds simple? Unfortunately not and the drill spilled.

Nudrill had engaged J-Can on dozens of assignments from 1989 to 2001. In an arrangement typical of the resources industry each agreement was made orally, and J-Can then issued an invoice after the services had been performed. Each invoice had an exclusion clause on the back to the effect that goods were transported at the owner's risk, and J-Can was not liable for damage however caused.