The client instructed Samuel Okoronkwo Jr. in relation to a potential claim arising from the provision of Covid-19 testing services supplied to a customer who required test results to enable international travel.
The client operates a private healthcare service providing Covid-19 testing services to individuals, businesses and NHS-related clients. A customer purchased Covid-19 tests for herself, her partner and her son in order to travel abroad. Following changes to Covid-19 travel regulations and increased demand on testing laboratories, there were delays in processing and returning test results and certificates.
The customer alleged that the delay in receiving the required results prevented her and her family from travelling and resulted in the loss of their planned holiday. The customer subsequently sought compensation from the client in the sum of approximately £6,000, representing the alleged losses incurred as a result of the cancelled trip.
The client’s position was that it should not be held liable for the customer’s claimed losses. The client relied upon the terms and conditions provided to customers at the time of booking, which confirmed that advertised turnaround times for test results were only estimates and that results could sometimes take longer than anticipated.
The client explained that customers were made aware of these terms before completing their purchase and that the delays experienced were caused by external factors, including changes to Covid-19 regulations and increased laboratory pressures, rather than any failure by the client to provide the service.
Counsel was instructed to advise the client regarding the merits of defending the potential claim and to assist with preparing a response to the customer’s allegations.
The principal issue was whether the client could be held liable for the customer’s alleged financial losses arising from the delayed return of Covid-19 test results.
Counsel considered whether the terms and conditions incorporated into the booking process effectively limited the client’s liability by making customers aware that advertised turnaround times were only indicative and that delays could occur. Counsel considered whether the customer had accepted those terms before purchasing the testing service.
A further issue concerned whether the delay in providing the results amounted to a breach of contract or failure to provide the service with reasonable care and skill. Counsel considered the circumstances surrounding the delay, including the impact of changing Covid-19 travel requirements and laboratory processing times.
Counsel also considered whether the losses claimed by the customer were recoverable. In particular, Counsel considered whether the claimed holiday expenses were too remote and whether the customer had taken reasonable steps to mitigate her losses, including whether appropriate travel insurance had been obtained to cover circumstances outside of the client’s control.
Counsel advised that the client had potential arguments that the customer had contributed to her own losses by failing to obtain suitable insurance cover for travel disruption and external delays.
Counsel advised that the client had reasonable grounds to defend the customer’s claim based upon the contractual terms provided to customers at the point of booking. Counsel advised that the wording of the terms and conditions clearly indicated that estimated turnaround times for results were a guide only and that delays could occur.
Counsel advised that the client should maintain that there was no guaranteed timeframe for the return of results and that the delay arose from external circumstances outside of the client’s reasonable control. Counsel advised that the client should rely upon evidence demonstrating the circumstances affecting laboratory processing times and any relevant communications provided to customers.
Counsel advised that the customer’s claim for approximately £6,000 in compensation may be difficult to establish, particularly where the losses arose from the cancellation of travel arrangements rather than directly from the testing service itself. Counsel advised that the client should argue that such losses were not foreseeable or recoverable under the terms of the agreement.
Counsel further advised that the customer’s failure to obtain appropriate travel insurance may be relevant when considering whether she had taken reasonable steps to mitigate her losses.
A Defence was prepared addressing the allegations raised by the customer and setting out the client’s position that liability was denied. The Defence relied upon the contractual terms, the circumstances surrounding the delay and the customer’s failure to mitigate any alleged losses.
The Defence was subsequently filed and signed by the company director on behalf of the client.
Counsel advised that the next steps would be to monitor whether the customer served a Reply to Defence and/or whether the court issued a Directions Questionnaire. Counsel advised that further advice would be provided once the procedural position became clearer.
The client was advised to retain all relevant documentation, including booking records, terms and conditions, customer communications, laboratory correspondence and evidence relating to the delays, in order to support the defence of the claim.
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