London Drugs Ltd. V. Kuehne & Nagel International Ltd. - at The Supreme Court of Canada - The Majority Opinion

The Majority Opinion

Iacobucci J., writing for the majority, observed:

There is no general rule in Canada to the effect that an employee acting in the course of his or her employment and performing the "very essence" of his or her employer's contractual obligations with a customer, does not owe a duty of care, whether one labels it "independent" or otherwise, to the employer's customer.

The mere fact that the employee is performing the "very essence" of a contract between the plaintiff and his or her employer does not, in itself, necessarily preclude a conclusion that a duty of care was present.

While the employees were liable in negligence, they were able to gain protection under the contract. Employees are able to gain protection where:

  1. the limitation of liability clause must, either expressly or impliedly, extend its benefit to the employee(s) seeking to rely on it; and
  2. the employee(s) seeking the benefit of the limitation of liability clause must have been acting in the course of their employment and must have been performing the very services provided for in the contract between their employer and the plaintiff when the loss occurred.

Read more about this topic:  London Drugs Ltd. V. Kuehne & Nagel International Ltd., At The Supreme Court of Canada

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