OMV Petrom SA v Glencore International AG (Rev 1)

OMV Petrom SA v Glencore International AG (Rev 1)

The correct measure of damages for deceit is the difference between the price paid and the market value of the blends at the bill of lading date, including a discount for risk and uncertainty, not by comparative yield or subsequent events.

Parties
Claimant/respondent: OMV Petrom SA; Defendant/appellant: Glencore International AG
Jurisdiction
England and Wales
Judgment Date
21 July 2016
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Damages for Deceit, Fraudulent Misrepresentation, Measure of Damages, Market Value Assessment
Commercial Law Tort Law Damages for Deceit Fraudulent Misrepresentation Measure of Damages Market Value Assessment

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Parties

OMV Petrom SA

Claimant/respondent

Glencore International AG

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 What is the appropriate measure of damages for deceit in the supply of crude oil?
  2. 2 Should damages be assessed based on market value at the date of acquisition or by comparative yield?
  3. 3 Is a discount for risk and uncertainty in the blends justified?

Ratio Decidendi

The correct measure of damages for deceit is the difference between the price paid and the market value of the blends at the bill of lading date, including a discount for risk and uncertainty, not by comparative yield or subsequent events.

Court Disposition

Appeal dismissed

Orders

  • Petrom's damages assessed as price paid less market value with $1 per barrel discount for risk and uncertainty
  • No account of profits claim pursued by Petrom