Samcrete Egypt Engineers and Contractors S.a.e. v Land Rover Exports Ltd [2001] EWCA Civ 2019 (21st December, 2001)

Samcrete Egypt Engineers and Contractors S.a.e. v Land Rover Exports Ltd [2001] EWCA Civ 2019 (21st December, 2001)

The presumption in Article 4(2) of the Rome Convention that the law of the country of the party effecting the characteristic performance governs the contract can be displaced where the circumstances as a whole demonstrate a closer connection with another country. In this case, the guarantee's centre of gravity was...

Source-derived case information.

Citation
[2001] EWCA Civ 2019
Parties
Defendant/appellant: Samcrete Egypt Engineers and Contractors S.A.E.; Claimant/respondent: Land Rover Exports Limited
Jurisdiction
England and Wales
Procedural Posture
Civil Appeal / Appeal From Birmingham Mercantile Court Decision on Application for Stay of Proceedings
Outcome
Appeal dismissed
Legal Topics
Applicable Law in Absence of Choice, Rome Convention Article 4, Forum Non Conveniens, Contracts of Guarantee
Private International Law Contract Law Applicable Law in Absence of Choice Rome Convention Article 4 Forum Non Conveniens Contracts of Guarantee

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Parties

Samcrete Egypt Engineers and Contractors S.A.E.

Defendant/appellant

Land Rover Exports Limited

Claimant/respondent

Procedural Posture

Civil Appeal / Appeal From Birmingham Mercantile Court Decision on Application for Stay of Proceedings

Legal Issues

  1. 1 What is the applicable law governing a contract of guarantee where no express choice of law is made and the underlying contract contains a choice of law clause?
  2. 2 What is the correct approach to the presumption in Article 4(2) of the Rome Convention in such circumstances?
  3. 3 Should the proceedings be stayed on the ground of forum non conveniens?

Ratio Decidendi

The presumption in Article 4(2) of the Rome Convention that the law of the country of the party effecting the characteristic performance governs the contract can be displaced where the circumstances as a whole demonstrate a closer connection with another country. In this case, the guarantee's centre of gravity was in England due to the place of payment, the currency, and the connection to the underlying contract governed by English law. Therefore, English law applies to the guarantee, and the application for a stay was rightly dismissed.

Court Disposition

Appeal dismissed

Orders

  • Respondent to pay half Appellant's costs
  • Costs summarily assessed but final sum to be agreed