David works as a truck driver for Power-Plant Haulage Ltd. Longridge Manufacturing has entered into a hire agreement with Power-Plant for the hire of a truck and driver, David. The hire agreement states that Power-Plant retains the right to take disciplinary action against David, and that they will pay his wages, although it also states that David now works for Longridge Manufacturing.

On a delivery, David is working beyond his legal hours and falls asleep at the wheel, crashing into another car driven by Sarah, who receives substantial injuries.

Sarah now sues Longridge, however, they claim that David is not their employee and therefore they are not liable.