The Technology and Construction Court has recently held that an
exclusion clause purporting to exclude any claim in negligence was
reasonable under the Unfair Contract Terms Act 1977 (UCTA).
The decision provides useful clarification
on the circumstances under which a broadly-drafted exclusion clause
might be considered to be reasonable even if a part of it is deemed
invalid under UCTA. It also highlights the importance of
identifying potential areas of risk under a contract and
considering how these should be covered by insurance.
Goodlife Foods Limited v Hall Fire Protection Limited: the
facts
Goodlife, a producer of vegetarian meals, entered into a
contract with Hall Fire for the design, supply, installation and
commissioning of a fire suppression system at Goodlife's food
production factory. In 2012, a fire broke out at the premises which
led to property damage and business interruption losses of over
£6 million.
