R G Grain Trade Llp (UK) v Feed Factors International Ltd

R G Grain Trade Llp (UK) v Feed Factors International Ltd

The certificates of quality and condition issued by the Sellers' superintendent were not final and binding where the Buyers exercised their right to appoint their own supervisor and called for a second analysis; in such circumstances, GAFTA Sampling Rule 5.1.6 applied, making the Salamon & Seaber analysis final. The Board of Appeal erred in law by concluding that the Buyers were entitled to reject the documents and goods for breach of the fibre content provision without considering whether the term was a condition, warranty, or innominate term. The matter was remitted to the Board for further consideration.

Parties
Claimant: R G Grain Trade LLP (UK); Defendant: Feed Factors International Ltd
Jurisdiction
England and Wales
Judgment Date
20 July 2011
Procedural Posture
Commercial Arbitration Appeal / Judgment on Appeal Under Section 69 of the Arbitration Act 1996
Outcome
Appeal allowed in part; matter remitted to the Board of Appeal for further consideration on the right to reject.
Legal Topics
Finality of Quality Certificates, Right to Reject Goods, Interpretation of GAFTA Contracts, Damages for Breach of Contract
Commercial Law Arbitration Contract Law Finality of Quality Certificates Right to Reject Goods Interpretation of GAFTA Contracts Damages for Breach of Contract

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 8 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

R G Grain Trade LLP (UK)

Claimant

Feed Factors International Ltd

Defendant

Procedural Posture

Commercial Arbitration Appeal / Judgment on Appeal Under Section 69 of the Arbitration Act 1996

Legal Issues

  1. 1 Whether certificates of quality and condition issued by the Sellers' superintendent were final and binding under the contract
  2. 2 Whether the Buyers were entitled to reject the documents and goods despite clause 5 of GAFTA No. 119

Ratio Decidendi

The certificates of quality and condition issued by the Sellers' superintendent were not final and binding where the Buyers exercised their right to appoint their own supervisor and called for a second analysis; in such circumstances, GAFTA Sampling Rule 5.1.6 applied, making the Salamon & Seaber analysis final. The Board of Appeal erred in law by concluding that the Buyers were entitled to reject the documents and goods for breach of the fibre content provision without considering whether the term was a condition, warranty, or innominate term. The matter was remitted to the Board for further consideration.

Court Disposition

Appeal allowed in part; matter remitted to the Board of Appeal for further consideration on the right to reject.

Orders

  • Declaration that the Sellers' superintendent's certificates were not final and binding where a second analysis was called for.
  • Remission to the Board of Appeal to determine whether the fibre content provision was a condition, warranty, or innominate term, and the consequences thereof.