Euro-Asian Oil SA v Credit Suisse AG & Ors [2018] EWCA Civ 1720 (25 July 2018)

Euro-Asian Oil SA v Credit Suisse AG & Ors [2018] EWCA Civ 1720 (25 July 2018)

The fourth sale contract was a standard CIF contract; Euro-Asian was not a willing participant in any separate arrangement or 'carousel'. Credit Suisse was liable under the letter of indemnity as the warranties given were untrue at the time of presentation. The proper measure of damages was the sub-sale price to Real Oil, as this was within the parties' contemplation and displaced the market value rule. Credit Suisse was entitled to a full indemnity from Abilo, not merely an 80% contribution, as Abilo was the primary obligor and Credit Suisse's liability arose at Abilo's request and for its benefit.

Citation
[2018] EWCA Civ 1720
Parties
Respondent/cross Appellant (claimant): Euro-Asian Oil SA (formerly Euro-Asian Oil AG); Appellant/cross Respondent (defendant): Credit Suisse AG; Second Respondent (third Party): Abilo (UK) Ltd; Fourth Party: Mr Dan Igniska
Jurisdiction
England and Wales
Judgment Date
25 July 2018
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court (commercial Court)
Outcome
Appeal and cross-appeal dismissed on liability and damages; appeal allowed on indemnity/contribution issue.
Legal Topics
CIF Contracts, Letters of Indemnity, Measure of Damages for Non Delivery, Contribution and Indemnity Between Co Obligors, Sale of Goods Act 1979 S.51, Documentary Credits, Fraudulent Presentation Under Letters of Credit
Commercial Law Contract Law Banking Law CIF Contracts Letters of Indemnity Measure of Damages for Non Delivery Contribution and Indemnity Between Co Obligors Sale of Goods Act 1979 S.51 +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 17 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

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

Respondent/cross Appellant (claimant)

Credit Suisse AG

Appellant/cross Respondent (defendant)

Abilo (UK) Ltd

Second Respondent (third Party)

Mr Dan Igniska

Fourth Party

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court (commercial Court)

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 Proper measure of damages for breach of the letter of indemnity—market value or sub-sale price
  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 or 'carousel'. Credit Suisse was liable under the letter of indemnity as the warranties given were untrue at the time of presentation. The proper measure of damages was the sub-sale price to Real Oil, as this was within the parties' contemplation and displaced the market value rule. Credit Suisse was entitled to a full indemnity from Abilo, not merely an 80% contribution, as Abilo was the primary obligor and Credit Suisse's liability arose at Abilo's request and for its benefit.

Court Disposition

Appeal and cross-appeal dismissed on liability and damages; appeal allowed on indemnity/contribution issue.

Orders

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