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England and Wales Court of Appeal (Civil Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Wood & Anor v TUI Travel Plc (t/a First Choice) [2017] EWCA Civ 11 (16 January 2017) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2017/11.html Cite as: [2017] EWCA Civ 11, [2018] 2 WLR 1051, [2018] QB 927, [2017] 2 All ER (Comm) 734, [2017] PIQR P8, [2017] 1 Lloyd's Rep 322 |
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ON APPEAL FROM BIRMINGHAM COUNTY COURT
HHJ WORSTER
3YJ60681
Strand, London, WC2A 2LL |
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B e f o r e :
(SIR BRIAN LEVESON)
LORD JUSTICE MCFARLANE
and
LORD JUSTICE BURNETT
____________________
DENNIS WOOD MARGARET WOOD |
Respondent |
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- and - |
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TUI Travel PLC T/A First Choice |
Appellant |
____________________
Robert Weir QC and Andrew Young (instructed by Irwin Mitchell LLP) for the Respondent
Hearing date: 22nd November 2016
____________________
Crown Copyright ©
Lord Justice Burnett:
The 1982 Act
"1 The contracts concerned
(1) In this Act … a "contract for the transfer of goods" means a contract under which one person transfers or agrees to transfer to another the property in goods, other than an excepted contract.
(2) For the purposes of this section an excepted contract means any of the following:-
(a) a contract for the sale of goods; ...
(3) For the purposes of this Act … a contract is a contract for the transfer of goods whether or not services are also provided or to be provided under the contract, and (subject to subsection (2) above) whatever the nature of the consideration for the transfer or agreement to transfer."
Section 4 provided:
"4 Implied terms about quality or fitness
(1) Except as provided by this section and section 5 below and subject to the provisions of any other enactment, there is no implied condition or warranty about the quality or fitness for any particular purpose of goods supplied under a contract for the transfer of goods.
(2) Where under such a contract, the transferor transfers the property in goods in the course of a business, there is an implied condition that the goods supplied under the contract are of satisfactory quality.
…"
The implied condition that the goods be of satisfactory quality is the same as is implied by section 14(2) of the Sale of Goods Act 1979 ("the 1979 Act").
"12 The contracts concerned
(1) In this Act a "contract for the supply of services" means, subject to subsection (2) below, a contract under which a person ("the supplier") agrees to carry out a service.
(2) For the purposes of this Act, a contract of service or apprenticeship is not a contract for the supply of a service.
(3) Subject to subsection (2) above a contract is a contract for the supply of a service for the purposes of this Act whether not goods are also –
(a) transferred or to be transferred, or
(b) bailed or to be bailed by way of hire,
under the contract and whatever the nature of the consideration for which the service is to be carried out.
13 Implied term about care and skill
In a contact for the supply of a service, where the supplier is acting in the course of a business, there is an implied term that the supplier will carry out the service with reasonable care and skill."
There is no dispute that food is capable of being "goods" for the purposes of the 1982 Act, a term with a wide definition in section 18.
The Facts
The Proceedings
(1) The other party to the contract is liable to the consumer for the proper performance of the obligations under the contract, irrespective of whether such obligations are to be performed by that other party or by other suppliers of services but this shall not affect any remedy or right of action which that other party may have against those other suppliers of services.
(2) The other party to the contract is liable to the consumer for any damage caused to him by the failure to perform the contract or the improper performance of the contract unless the failure or the improper performance is due neither to any fault of that other party nor to that of another supplier of services, because-
(a) the failures which occur in the performance of the contract are attributable to the consumer;
(b) such failures are attributable to a third party unconnected with the provision of the services contracted for, and are unforeseeable or unavoidable; or
(c) such failures are due to-
(i) unusual and unforeseeable circumstances beyond the control of the party by whom this exception is pleaded, the consequences of which could not have been avoided even if all due care had been exercised; or
(ii) an event which the other party to the contract or the supplier of services, even with all due care, could not foresee or forestall.
(3) In the case of damage arising from the non-performance or improper performance of the services involved in the package, the contract may provide for compensation to be limited in accordance with the international conventions which govern such services.
(4) In the case of damage other than personal injury resulting from the non-performance or improper performance of the services involved in the package, the contract may include a term limiting the amount of compensation which will be paid to the consumer, provided that the limitation is not unreasonable.
(5) Without prejudice to paragraph (3) and paragraph (4) above, liability under paragraphs (1) and (2) above cannot be excluded by any contractual term.
…"
The Appeal
i) The contract between Mr and Mrs Wood and First Choice was a contract for the supply of services and could not also have been a contract for the transfer of goods;
ii) No property in goods was transferred by First Choice to Mr and Mrs Wood, in particular they never acquired property in the food or drink they consumed;
iii) For either or both reasons the implied condition in section 4(2) of the 1982 Act formed no part of the contract, rather the applicable implied term was that found in section 13.
Discussion
"When persons go into a restaurant and order food, they are making a contract of sale in exactly the same way as they are making a contract of sale when they go in and order any other goods."
Having concluded that as between the customer who ordered food and the restaurant, the customer is responsible for payment, unless the proprietor is made aware that an individual is the host, he continued:
"It follows beyond all doubt that there is an implied warranty that the food supplied will be reasonably fit for human consumption. I hold that the whitebait delivered in this case were not reasonably fit for human consumption, and that there was a breach of warranty."
"The parties' submissions have … lent a degree of metaphysical complexity to commonplace facts."
The supply of bunkers is commonplace in the world of shipping. The provision of holidays, hotel accommodation, and weekend breaks or even casual stops at a bed and breakfast, often include an entitlement to food and drink within an overall price. Such contracts are made millions of times a year in this jurisdiction. We too have enjoyed submissions of a metaphysical nature which might surprise the many thousands of customers who enjoyed breakfast, perhaps with orange juice, tea or coffee, in their hotels or guest houses every morning in this jurisdiction or the world over as part of package holidays. Do they ever own the food and drink they are served? Do they own it when it is served to them on a plate? Do they own it when they serve themselves from a buffet? Do they own it when it is placed in their mouths? And who owns the scraps taken away at the end of a meal? Could a customer wrap a croissant from his plate in a napkin and eat it on the move if pressed for time, or would he be taking away the hotel's property? Could the hotel demand he leave the half sausage on his plate that he does not want to eat, or is he at liberty to take it to give to his dog waiting in the car?
Lord Justice McFarlane
Sir Brian Leveson, P