Natixis SA v Marex Financial & Ors [2019] EWHC 2549 (Comm) (02 October 2019)

Natixis SA v Marex Financial & Ors [2019] EWHC 2549 (Comm) (02 October 2019)

Marex is liable to Natixis for breach of contract for failing to deliver good title to the nickel, as the warehouse receipts were forgeries and the risk of forgery was contractually allocated to Marex. The contracts are not void for common mistake because the risk was on Marex. Estoppel cannot create title or bind Access World to deliver metal against forged receipts. Access World is not contractually or tortiously liable to Marex or Natixis for authentication of the forged receipts. Marex's insurance claim against MCAP was settled and dismissed.

Citation
[2019] EWHC 2549 (Comm)
Parties
Claimant: Natixis S.A.; First Defendant/part 20 Claimant: Marex Financial; Second Defendant/part 20 Defendant: Access World Logistics (Singapore) Pte Ltd; Fourth Party/part 20 Defendant: MCAP (Lloyd's syndicate)
Jurisdiction
England and Wales
Judgment Date
02 October 2019
Procedural Posture
Commercial Court Claim With Part 20 Proceedings / Final Judgment After Trial
Outcome
Claim by Natixis against Marex succeeds; claims against Access World and MCAP dismissed or settled.
Legal Topics
Forgery, Title to Goods, Estoppel, Negligence, Restitution, Indemnity, Warehouse Receipts, Insurance Non Disclosure
Commercial Law Contract Law Tort Law Insurance Law Forgery Title to Goods Estoppel Negligence +4 more

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Parties

Natixis S.A.

Claimant

Marex Financial

First Defendant/part 20 Claimant

Access World Logistics (Singapore) Pte Ltd

Second Defendant/part 20 Defendant

MCAP (Lloyd's syndicate)

Fourth Party/part 20 Defendant

Procedural Posture

Commercial Court Claim With Part 20 Proceedings / Final Judgment After Trial

Legal Issues

  1. 1 Whether Marex is liable to Natixis for breach of contract for failing to deliver good title to nickel under forged warehouse receipts
  2. 2 Whether the Purchase Contracts are void for common mistake
  3. 3 Whether Access World is contractually or tortiously liable to Marex or Natixis for authentication of forged warehouse receipts

Ratio Decidendi

Marex is liable to Natixis for breach of contract for failing to deliver good title to the nickel, as the warehouse receipts were forgeries and the risk of forgery was contractually allocated to Marex. The contracts are not void for common mistake because the risk was on Marex. Estoppel cannot create title or bind Access World to deliver metal against forged receipts. Access World is not contractually or tortiously liable to Marex or Natixis for authentication of the forged receipts. Marex's insurance claim against MCAP was settled and dismissed.

Court Disposition

Claim by Natixis against Marex succeeds; claims against Access World and MCAP dismissed or settled.

Orders

  • Marex to pay Natixis US$30,428,374.40 (purchase price)
  • Marex to pay Natixis US$1,476,025.80 (hedging loss)