A photograph developing shop, Photo Trade Processing Ltd, lost some snaps from a wedding.
Clarke J held that the photo shop was liable to Woodman for the loss of the photographs, because other alternative sources of supply were not shown to be available nearby and the photo shop had not offered a service without the exclusion clause under the Unfair Contract Terms Act 1977 sections 2(2) or 3.
The Code of Practice agreed between the OFT and the Photographic Industry envisaged a two tiered service.
In the course of his judgment he referred to Peek v North Staffordshire Rly Co[1] where under the Railway and Canal Traffic Act 1854 liability exclusion clauses were permitted that were ‘just and reasonable’.
Six to five, the Lords ruled that the clause was invalid because liability for mistake as well as negligence was excluded, the railway had a monopoly so customers had only the company's terms, and only ‘exorbitant’ insurance was available.