Euro-Asian Oil SA v Credit Suisse AG & Ors

Euro-Asian Oil SA v Credit Suisse AG & Ors

The fourth sale contract was a standard CIF contract; Euro-Asian was not a willing participant in any separate arrangement. Credit Suisse was liable under the letter of indemnity as the warranties given were untrue. The measure of damages was properly assessed by reference to the sub-sale to Real Oil, not market value. Credit Suisse was entitled to a full indemnity from Abilo, not limited to 80%.

Parties
Claimant/respondent/cross Appellant: Euro-Asian Oil SA (formerly Euro-Asian Oil AG); Defendant/appellant/cross Respondent: Credit Suisse AG; Third Party/second Respondent: Abilo (UK) Ltd; Fourth Party: Mr Dan Igniska
Jurisdiction
England and Wales
Judgment Date
25 July 2018
Procedural Posture
Civil Appeal (commercial) / Appeal From High Court (commercial Court) to Court of Appeal
Outcome
Appeal by Credit Suisse on liability under the letter of indemnity dismissed; cross-appeal by Euro-Asian on quantum dismissed; Credit Suisse's appeal on full indemnity against Abilo allowed.
Legal Topics
CIF Contracts, Letters of Indemnity, Measure of Damages, Contribution and Indemnity, Breach of Warranty
Commercial Law Contract Law Banking Law CIF Contracts Letters of Indemnity Measure of Damages Contribution and Indemnity Breach of Warranty

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Parties

Euro-Asian Oil SA (formerly Euro-Asian Oil AG)

Claimant/respondent/cross Appellant

Credit Suisse AG

Defendant/appellant/cross Respondent

Abilo (UK) Ltd

Third Party/second Respondent

Mr Dan Igniska

Fourth Party

Procedural Posture

Civil Appeal (commercial) / Appeal From High Court (commercial Court) to Court of Appeal

Legal Issues

  1. 1 Whether the fourth sale contract was a CIF contract and whether Credit Suisse was liable under the letter of indemnity.
  2. 2 The correct measure of damages for breach of the warranties in the letter of indemnity.
  3. 3 Whether Credit Suisse is entitled to a full indemnity or only a contribution from Abilo.

Ratio Decidendi

The fourth sale contract was a standard CIF contract; Euro-Asian was not a willing participant in any separate arrangement. Credit Suisse was liable under the letter of indemnity as the warranties given were untrue. The measure of damages was properly assessed by reference to the sub-sale to Real Oil, not market value. Credit Suisse was entitled to a full indemnity from Abilo, not limited to 80%.

Court Disposition

Appeal by Credit Suisse on liability under the letter of indemnity dismissed; cross-appeal by Euro-Asian on quantum dismissed; Credit Suisse's appeal on full indemnity against Abilo allowed.

Orders

  • Credit Suisse's appeal on liability under the fourth letter of indemnity dismissed.
  • Euro-Asian's cross-appeal on measure of damages dismissed.