MUR Shipping BV v RTI Ltd.

MUR Shipping BV v RTI Ltd.

The majority held that the force majeure event could have been overcome by MUR accepting payment in euros, as this would have resulted in MUR receiving the correct amount of US dollars at the correct time with no detriment, and the clause did not require strict contractual performance if the adverse consequences were fully avoided. Therefore, MUR was not entitled to rely on the force majeure clause to suspend its obligations.

Parties
Claimant/respondent: MUR Shipping BV; Defendant/appellant: RTI Ltd
Jurisdiction
England and Wales
Judgment Date
27 October 2022
Procedural Posture
Civil Appeal (contract/commercial) / Court of Appeal (final Judgment on Appeal From High Court)
Outcome
Appeal allowed (by majority); arbitration award restored in favour of RTI Ltd.
Legal Topics
Force Majeure, Reasonable Endeavours, Currency of Payment, Interpretation of Contracts, Arbitration Appeals
Contract Law Commercial Law Arbitration Force Majeure Reasonable Endeavours Currency of Payment Interpretation of Contracts Arbitration Appeals

Case Brief

Summary, issues, holding and outcome

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Parties

MUR Shipping BV

Claimant/respondent

RTI Ltd

Defendant/appellant

Procedural Posture

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

Legal Issues

  1. 1 Whether a force majeure clause can be relied upon when payment in the contractually specified currency is impeded by sanctions but an alternative currency is offered without detriment to the receiving party.
  2. 2 Whether 'reasonable endeavours' in a force majeure clause requires acceptance of non-contractual performance (payment in euros instead of US dollars).

Ratio Decidendi

The majority held that the force majeure event could have been overcome by MUR accepting payment in euros, as this would have resulted in MUR receiving the correct amount of US dollars at the correct time with no detriment, and the clause did not require strict contractual performance if the adverse consequences were fully avoided. Therefore, MUR was not entitled to rely on the force majeure clause to suspend its obligations.

Court Disposition

Appeal allowed (by majority); arbitration award restored in favour of RTI Ltd.

Orders

  • The appeal is allowed.
  • The award of the arbitrators is restored, entitling RTI Ltd to damages for MUR's refusal to nominate vessels.