''Interfoto Picture Library Ltd v Stiletto Visual Programmes Ltd''
EWCA Civ 6is an English contract law">987
EWCA Civ 6is an English contract law case on onerous clauses and the rule of
common law
Common law (also known as judicial precedent, judge-made law, or case law) is the body of law primarily developed through judicial decisions rather than statutes. Although common law may incorporate certain statutes, it is largely based on prece ...
that reasonable notice of them must be given to a contracting party in order that they be effective. It also addressed, but did not decide, the position of onerous clauses as disguised
penalties (which are ineffective under
common law
Common law (also known as judicial precedent, judge-made law, or case law) is the body of law primarily developed through judicial decisions rather than statutes. Although common law may incorporate certain statutes, it is largely based on prece ...
).
Facts
Interfoto delivered 47 photographic transparencies to Stiletto in a jiffy bag. Stiletto was planning to use them for a presentation, but in the event it did not. It never opened the transparency bag or read Interfoto's standard terms and conditions, which were inside the bag. Condition 2 said there was a holding fee of £5 per transparency for each day over fourteen days. After around a month, Interfoto sent a bill for £3,783.50.
Judgment
The
Court of Appeal
An appellate court, commonly called a court of appeal(s), appeal court, court of second instance or second instance court, is any court of law that is empowered to Hearing (law), hear a Legal case, case upon appeal from a trial court or other ...
held that the holding fee was ineffective.
Dillon LJ said that a "particularly onerous or unusual" term must have special notice. However, Interfoto was entitled to a small restitutory charge of £3.50 per transparency per week for their holding.
Bingham LJ held that the clause was not valid. It was "a venial period of delay
oran inordinate liability". The issue was, he said,
He advocated embracing
good faith
In human interactions, good faith () is a sincere intention to be fair, open, and honest, regardless of the outcome of the interaction. Some Latin phrases have lost their literal meaning over centuries, but that is not the case with , which i ...
- "showing up your cards", "fair dealing", and so on. On penalty clauses, Bingham LJ noted at the end of his decision,
See also
*''
O'Brien v MGN Ltd''
002 002, 0O2, O02, OO2, or 002 may refer to:
Airports
*0O2, Baker Airport
*O02, Nervino Airport
Astronomy
*1996 OO2, the minor planet 7499 L'Aquila
*1990 OO2, the asteroid 9175 Graun
Fiction
*002, fictional British 00 Agent
*''002 Operazione Luna'' ...
CLC 33,
3 where
Hale LJ said that the words "onerous or unusual" are not "terms of art"
*''
OFT v Abbey
is a judicial decision of the United Kingdom Supreme Court relating to bank charges in the United Kingdom, with reference to the situation where a bank account holder goes into unplanned overdraft.
When a bank customer uses an unplanned overdra ...
''
EWHC 875 (Comm)*Bates & Others v Post Office Ltd#Judgment No 3 Common Issues – March 2019">''Bates & Others v Post Office Ltd'' (Judgment No 3),
019EWHC 606 (QB): where the judgment on "common issues" made several references to ''Interfoto''
References
{{reflist
English incorporation case law
Court of Appeal (England and Wales) cases
1987 in United Kingdom case law