Gordon Watt has successfully represented the defenders at debate in the case of Donaghy Ltd v Lloyds TSB Commercial Finance Ltd. The pursuers sought damages having entered into a HP agreement with the defenders relating to two tipper-trucks one of which was, they alleged, effectively unusable. The HP agreement, which was on Lloyds’ standard terms, expressly excluded Lloyds from any liability, express or implied, for the quality of the vehicles.

After debate in the Commercial Court Lord Menzies, in an ex tempore judgement, concluded that, in the circumstances, it was fair and reasonable to exclude liability for quality. Since the exclusion clause did not fall foul of the Unfair Contract Terms Act 1977 it was effective, and, accordingly, the action against Lloyds would be dismissed.

The case illustrates the reluctance of the courts to interfere in commercial bargains where experienced parties of equal bargaining strength are involved even when parties have contracted on a financier’s standard terms containing a comprehensive exclusion of liability. The action continues against the second defenders.

Since calling to the bar in 2007 Gordon Watt has successfully represented the interests of finance companies in a number of cases.