Kuliarchar Sweater Industries Ltd v Frans Maas (UK) Ltd [2000] EWHC 194 (Comm) (04 April 2000)

Kuliarchar Sweater Industries Ltd v Frans Maas (UK) Ltd [2000] EWHC 194 (Comm) (04 April 2000)

The measure of damages for conversion is the FOB invoice value of the goods at the time of conversion, without deduction for discounts, as this reflects the price the claimants would have received but for the defendant's tort. Interest is awarded under Section 35A at 16% from December 1, 1998, reflecting the cost of borrowing US dollars in Bangladesh, where payment was due.

Citation
[2000] EWHC 194 (Comm)
Parties
Claimant: Kuliarchar Knitwear Ltd; Claimant: Amena Knitwear Ltd; Defendant: FM (Freight Forwarder)
Jurisdiction
England and Wales
Judgment Date
04 April 2000
Procedural Posture
Civil / Judgment After Trial on Quantum
Outcome
Judgment for the claimants.
Legal Topics
Conversion, Damages, Interest on Damages, Breach of Bailment, Negligence
Tort Law Commercial Law Conversion Damages Interest on Damages Breach of Bailment Negligence

Case Brief

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Parties

Kuliarchar Knitwear Ltd

Claimant

Amena Knitwear Ltd

Claimant

FM (Freight Forwarder)

Defendant

Procedural Posture

Civil / Judgment After Trial on Quantum

Legal Issues

  1. 1 What is the appropriate measure of damages for conversion of goods by a freight forwarder?
  2. 2 Are the claimants entitled to interest as damages or under Section 35A of the Supreme Court Act 1981, and at what rate?

Ratio Decidendi

The measure of damages for conversion is the FOB invoice value of the goods at the time of conversion, without deduction for discounts, as this reflects the price the claimants would have received but for the defendant's tort. Interest is awarded under Section 35A at 16% from December 1, 1998, reflecting the cost of borrowing US dollars in Bangladesh, where payment was due.

Court Disposition

Judgment for the claimants.

Orders

  • Kuliarchar awarded US $387,954.52 with interest at 16% from December 1, 1998.
  • Amena awarded US $80,271.36 with interest at 16% from December 1, 1998.