August 28, 2025
Canada Steamship Lines Ltd v The King 21 Jan 1952 [1952] AC 192, PC
A fire caused by the Crown's employees' negligence destroyed goods in a shed leased to Canada Steamship Lines. The court established a seminal three-stage test to determine if an indemnity or exemption clause in their contract covered liability for negligence. Facts The appellant, Canada Steamship Lines Ltd., leased a freight shed on a wharf in Montreal harbour from the respondent, the Crown. The lease stipulated that the lessee (appellant) would not have any claim against the lessor (Crown) for damage to goods in the shed (Clause 17) and that the lessee would indemnify the lessor against all claims for injury
