London Drugs Ltd v Kuehne & Nagel International Ltd, [1992] 3 SCR 299[2] is a leading decision of the Supreme Court of Canada on privity of contract.

London Drugs succeeded at first instance at the British Columbia Supreme Court,[4] where the trial judge found the employees personally liable for the full amount of the damages, limiting the company's liability to $40.

The theory of voluntary assumption of the risk permits an employee sued in tort to rely on a term of limitation in his employer's contract.

As to the second, he felt that the vicarious liability regime is best seen as a response to a number of policy concerns: The employee remains liable to the plaintiff for his independent torts.

In that regard, the following questions must be answered: Since the conduct of the employees was covered by the contract, the plaintiffs were considered to have voluntarily assumed the risk of their tortious behaviour.