Borealis AB v Geogas Trading SA

Borealis AB v Geogas Trading SA

Borealis did not act unreasonably or with actual knowledge of the contamination; its conduct did not break the chain of causation nor constitute a failure to mitigate. Losses claimed were not too remote, and Geogas is liable for damages as assessed.

Parties
Claimant: Borealis AB; Defendant: Geogas Trading SA
Jurisdiction
England and Wales
Judgment Date
09 November 2010
Procedural Posture
Commercial / Final Judgment
Outcome
Judgment for claimant
Legal Topics
Breach of Contract, Damages, Causation, Remoteness, Mitigation, Quantum
Contract Law Commercial Law Breach of Contract Damages Causation Remoteness Mitigation Quantum

Case Brief

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Parties

Borealis AB

Claimant

Geogas Trading SA

Defendant

Procedural Posture

Commercial / Final Judgment

Legal Issues

  1. 1 Whether Borealis failed to react appropriately to the pH alarm, breaking the chain of causation or failing to mitigate loss
  2. 2 Whether losses claimed by Borealis are too remote to be recoverable
  3. 3 Whether Borealis failed to mitigate its losses regarding the cavern's replenishment

Ratio Decidendi

Borealis did not act unreasonably or with actual knowledge of the contamination; its conduct did not break the chain of causation nor constitute a failure to mitigate. Losses claimed were not too remote, and Geogas is liable for damages as assessed.

Court Disposition

Judgment for claimant

Orders

  • Geogas to pay Borealis damages as assessed: €1,250,000 for supplier repair costs, €75,000 for personnel costs, €6,000 for equipment operating costs, €19,066 for warehousing corroded tubes, €15,000 for spare parts, €36,101 for September 2004 loss of profit, €2,902,237 for September 2003 loss of profit, €2.75 million...
  • Geogas at liberty to take delivery of corroded tubes or Borealis to dispose after a set period