Globe Master Management Ltd v Boulus Gad Ltd [2001] EWCA Civ 1394 (24 July 2001)

Globe Master Management Ltd v Boulus Gad Ltd [2001] EWCA Civ 1394 (24 July 2001)

The guarantee did not require arbitration before suit against the guarantor, and the force majeure clause did not excuse payment of sums already due as at the date of termination. However, there was an arguable case regarding the application of force majeure or frustration to future sums, justifying permission to appeal on that issue.

Citation
[2001] EWCA Civ 1394
Parties
Claimant/respondent: Globe Master Management Limited; Defendant/applicant: Boulus Gad Limited
Jurisdiction
England and Wales
Judgment Date
24 July 2001
Procedural Posture
Civil Appeal / Application for Permission to Appeal From Summary Judgment
Outcome
Permission to appeal granted in part, conditional on payment of undisputed sum.
Legal Topics
Guarantee Liability, Arbitration Clauses, Force Majeure, Frustration of Contract
Contract Law Commercial Law Guarantee Liability Arbitration Clauses Force Majeure Frustration of Contract

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Parties

Globe Master Management Limited

Claimant/respondent

Boulus Gad Limited

Defendant/applicant

Procedural Posture

Civil Appeal / Application for Permission to Appeal From Summary Judgment

Legal Issues

  1. 1 Whether the guarantee required arbitration before suit against guarantor
  2. 2 Whether force majeure or frustration excused payment under the contract

Ratio Decidendi

The guarantee did not require arbitration before suit against the guarantor, and the force majeure clause did not excuse payment of sums already due as at the date of termination. However, there was an arguable case regarding the application of force majeure or frustration to future sums, justifying permission to appeal on that issue.

Court Disposition

Permission to appeal granted in part, conditional on payment of undisputed sum.

Orders

  • Permission to appeal allowed in relation to $441,718.68, conditional on payment of $220,565.91 plus interest within 21 days.
  • Costs to be costs in the appeal.