Case Study



DUE DATE: March 15, 2010

Assignment 1

Jim an Englishman moved to Saudi Arabia to work on an oil rig there. His job is high risk and he has no life insurance. He entered into a six month contract with Drillers Inc who are incorporated in Jamaica. His contract has a governing law clause which states that the contract will be governed by Saudi law and there is also a clause which states that Drillers Inc shall not be liable for any injuries which Jim sustains on the job.

Jim goes out one night to have a drink at a local Saudi “pub” and in trying to relieve work stress he has one drink too many. He is travelling home on a moped which is the transportation provided to him by Drillers Inc, when he runs an amber   light and crashes into another Englishman Carl who also works at Drillers Inc. Carl is severely injured and ends up in intensive care. Jim has no injuries from the car accident.

While at work the next day Jim is worried about Carl and so are the other employees, in fact another employee Tom who is from Saudi Arabia, is so distracted that he forgets to buckle Jims safety harness. Jim climbs the drilling tower loses his balance and falls 30 feet. Jim sustains severe head and back injuries and it is feared he may never work again.

Under Jamaican and English Law the clause in the contract which states that Drillers Ink will not be liable for any injuries sustained on the job is unlawful, but it is permissible under Saudi law. Also, in Jamaica and England damages are recoverable for pain and suffering, but not in Saudi Arabia.

Advise Jim and Carl what compensation they are entitled to, if any.

The issue in contention revolves around determining the applicable law or the proper law in relation to the conflict of law that arises in relation to contract and tort.
The main issue to be settled is whether the courts will confer jurisdiction upon the English or Jamaican courts to hear the matter...