Nord Naphtha Limited v New Stream Trading AG

Nord Naphtha Limited v New Stream Trading AG

Clause 14.5 of the contract creates an obligation for New Stream Trading AG to repay the advance payment to Nord Naphtha Limited in the event of non-delivery due to force majeure; the Comfort Letter does not affect this contractual obligation.

Parties
Claimant/respondent: Nord Naphtha Limited; Defendant/appellant: New Stream Trading AG
Jurisdiction
England and Wales
Judgment Date
30 November 2021
Procedural Posture
Civil Appeal / Appeal From Summary Judgment
Outcome
Appeal dismissed
Legal Topics
Contract Interpretation, Force Majeure, Repayment of Advance, Summary Judgment
Contract Law Commercial Law Contract Interpretation Force Majeure Repayment of Advance Summary Judgment

Case Brief

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Parties

Nord Naphtha Limited

Claimant/respondent

New Stream Trading AG

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Summary Judgment

Legal Issues

  1. 1 Whether clause 14.5 of the contract creates an obligation for the seller to repay the advance payment in the event of non-delivery due to force majeure
  2. 2 Whether the Comfort Letter shifts the repayment obligation to the refinery
  3. 3 Whether the contract contains an express or implied term for repayment of the advance

Ratio Decidendi

Clause 14.5 of the contract creates an obligation for New Stream Trading AG to repay the advance payment to Nord Naphtha Limited in the event of non-delivery due to force majeure; the Comfort Letter does not affect this contractual obligation.

Court Disposition

Appeal dismissed

Orders

  • Summary judgment in favour of Nord Naphtha Limited upheld
  • New Stream Trading AG is obliged to repay the advance payment