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St Albans DC v International Computers

[1996] 4 All ER 481

Case summary last updated at 02/01/2020 10:47 by the Oxbridge Notes in-house law team.

Judgement for the case St Albans DC v International Computers

 D agreed to supply P with a computer system for administration of tax collection, with a clause limiting D’s liability for faults at £100,000 from D’s standard form contract. The defective system caused P loss greater than this and P sued for the full amount of damages, which CA awarded. The limitation clause was unreasonable given that the potential and actual losses were far greater than this, and D had insurance of over £50m. 
 
Nourse LJ: He applies Lord Bridge’s dictum above and can find no reason for overturning the trial judge’s finding that the term was unreasonable.

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