Computer 2000 Distribution Ltd & Ors v ICM Computer Solutions Plc

Computer 2000 Distribution Ltd & Ors v ICM Computer Solutions Plc

The suppliers fulfilled their contractual obligations by delivering the goods to the address and person specified in ICM's purchase orders. The loss caused by the fraud of a third party (Richard Cole) must fall on ICM, who held out the recipient as authorised. The suppliers are entitled to payment.

Parties
Claimant/respondent: Computer 2000 Distribution Limited; Claimant/respondent: Micro Peripherals Limited; Claimant/respondent: Imago Micro Limited; Defendant/appellant: ICM Computer Solutions Plc
Jurisdiction
England and Wales
Judgment Date
17 November 2004
Procedural Posture
Civil Appeal / Appeal From County Court Judgment
Outcome
Appeals dismissed with costs
Legal Topics
Goods Sold and Delivered, Delivery Under Contract, Authority to Receive Goods, Loss Allocation Due to Fraud
Contract Law Commercial Law Goods Sold and Delivered Delivery Under Contract Authority to Receive Goods Loss Allocation Due to Fraud

Case Brief

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Parties

Computer 2000 Distribution Limited

Claimant/respondent

Micro Peripherals Limited

Claimant/respondent

Imago Micro Limited

Claimant/respondent

ICM Computer Solutions Plc

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From County Court Judgment

Legal Issues

  1. 1 Whether delivery to the address and person specified in the purchase order constituted delivery under the contract
  2. 2 Whether the suppliers performed their contractual obligations entitling them to payment
  3. 3 On whom the loss caused by a third-party fraudster should fall

Ratio Decidendi

The suppliers fulfilled their contractual obligations by delivering the goods to the address and person specified in ICM's purchase orders. The loss caused by the fraud of a third party (Richard Cole) must fall on ICM, who held out the recipient as authorised. The suppliers are entitled to payment.

Court Disposition

Appeals dismissed with costs

Orders

  • ICM to pay Imago's costs on an indemnity basis from 18th June, with interest at 9% from 18th June or the date of payment to solicitors after that date
  • ICM to pay £5,000 on account of costs to Imago within 14 days