Suisse Atlantique v Rotterdamsche Kolen [1967]

Appellant chartered ship to respondent user for 2 years.
Agreed that in event of delays loading or unloading
vessel, respondent user would pay applicant $1000 a day.
Lengthy delays occurred, but applicant continued to
allow respondent user to use of ship for remainder of term.
On conclusion of contract, applicant sued respondent user
for damages, claiming sum in excess of $1000 a day.
Respondent user relied on limitation clause.
House of Lords rejected applicant’s argument that it
was fundamental breach of contract and limitation clause did not apply.
Although courts had on occasion, as matter of
construction, held an exclusion clause to be inapplicable where there had been
fundamental breach, in present case was no reason to limit plain contractual
provision that damages for delay should be assessed in accordance with limitation
clause.