Tradigrain SA & Ors v Intertek Testing Services (ITS) Canada Ltd & Anor

Tradigrain SA & Ors v Intertek Testing Services (ITS) Canada Ltd & Anor

Mr. Rackham was not a 'representative' of CBI within the meaning of the waiver of recourse clause, as the clause was limited to persons holding formal positions such as directors or equivalent. Even if he were, his conduct did not amount to gross negligence under German law, either objectively or subjectively. The limitation of liability clause in the CMA applied to limit liability even in cases of gross negligence. The appeal was therefore dismissed.

Parties
Claimant/appellant: Tradigrain S.A.; Claimant/appellant: Societa Italiana Assicurazioni e Riassicurazioni (SIAT) S.p.A. and Others; Defendant/respondent: Intertek Testing Services (ITS) Canada Limited; Defendant/respondent: Caleb Brett India Pvt Limited
Jurisdiction
England and Wales
Judgment Date
28 February 2007
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Construction of Insurance Contracts, Limitation of Liability, Gross Negligence Under German Law, Attribution of Liability to Company Representatives
Insurance Law Contract Law Commercial Law Construction of Insurance Contracts Limitation of Liability Gross Negligence Under German Law Attribution of Liability to Company Representatives

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Parties

Tradigrain S.A.

Claimant/appellant

Societa Italiana Assicurazioni e Riassicurazioni (SIAT) S.p.A. and Others

Claimant/appellant

Intertek Testing Services (ITS) Canada Limited

Defendant/respondent

Caleb Brett India Pvt Limited

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether Mr. Rackham was a 'representative' of CBI within the meaning of the waiver of recourse clause
  2. 2 Whether the loss was caused by gross negligence on Mr. Rackham's part under German law
  3. 3 Whether CBI/Intertek is entitled to limit its liability under clause (i) of Schedule III to the CMA

Ratio Decidendi

Mr. Rackham was not a 'representative' of CBI within the meaning of the waiver of recourse clause, as the clause was limited to persons holding formal positions such as directors or equivalent. Even if he were, his conduct did not amount to gross negligence under German law, either objectively or subjectively. The limitation of liability clause in the CMA applied to limit liability even in cases of gross negligence. The appeal was therefore dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed; judgment of Langley J. affirmed
  • Limitation of liability under clause (i) of Schedule III to the CMA applies