Bunge SA v Nidera BV [2013] EWCA Civ 1628 (12 December 2013)

Bunge SA v Nidera BV [2013] EWCA Civ 1628 (12 December 2013)

The Prohibition clause in Gafta 49 does not result in automatic cancellation upon announcement of an embargo; a causal link between the event and inability to perform is required. The Default clause applies to repudiation and provides a conventional measure of damages based on the difference between contract and market price at the date of default. The sellers' purported cancellation was a repudiation, entitling the buyers to damages under the Default clause.

Citation
[2013] EWCA Civ 1628
Parties
Claimant/appellant: Bunge S. A.; Defendant/respondent: Nidera B. V.
Jurisdiction
England and Wales
Judgment Date
12 December 2013
Procedural Posture
Appeal / Court of Appeal Judgment on Appeal From High Court (commercial Court)
Outcome
Appeal dismissed
Legal Topics
Prohibition Clause, Default Clause, Damages for Breach of Contract, Repudiation, Measure of Damages, Mitigation of Loss
Commercial Law Contract Law International Trade Prohibition Clause Default Clause Damages for Breach of Contract Repudiation Measure of Damages +1 more

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Parties

Bunge S. A.

Claimant/appellant

Nidera B. V.

Defendant/respondent

Procedural Posture

Appeal / Court of Appeal Judgment on Appeal From High Court (commercial Court)

Legal Issues

  1. 1 Whether the prospective effect of Resolution 599 resulted in automatic cancellation of the contract when announced on 5th August 2010
  2. 2 Whether buyers were entitled to recover damages by reference to the difference between contract price and market price on the date of termination
  3. 3 Whether the Default clause applies to repudiation and is conclusive of the measure of damages

Ratio Decidendi

The Prohibition clause in Gafta 49 does not result in automatic cancellation upon announcement of an embargo; a causal link between the event and inability to perform is required. The Default clause applies to repudiation and provides a conventional measure of damages based on the difference between contract and market price at the date of default. The sellers' purported cancellation was a repudiation, entitling the buyers to damages under the Default clause.

Court Disposition

Appeal dismissed

Orders

  • The appeal by Bunge S.A. is dismissed.
  • The decision of Hamblen J. and the GAFTA Board of Appeal is upheld.