Westbrook Resources Ltd v Globe Metallurgical Inc

Westbrook Resources Ltd v Globe Metallurgical Inc

Globe Metallurgical Inc. repudiated the contract by refusing to accept manganese ore screened over a 1/2 inch screen as contractually agreed, and by indicating it would not pay for or accept delivery of the material. Westbrook Resources Limited performed its obligations under the contract. The proper measure of damages is the difference between the contract price and the market price at the time of breach, as evidenced by the substitute sale to OM Materials. Globe's counterclaim fails.

Parties
Claimant: Westbrook Resources Limited; Defendant: Globe Metallurgical Inc.
Jurisdiction
England and Wales
Judgment Date
16 October 2007
Procedural Posture
Commercial Contract Dispute / Judgment After Trial
Outcome
Judgment for the claimant; counterclaim dismissed
Legal Topics
Repudiatory Breach, Damages Assessment, Interpretation of Contract Terms, Mitigation of Loss, Exclusive Jurisdiction Clause
Contract Law Commercial Law Sale of Goods Repudiatory Breach Damages Assessment Interpretation of Contract Terms Mitigation of Loss Exclusive Jurisdiction Clause

Case Brief

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Parties

Westbrook Resources Limited

Claimant

Globe Metallurgical Inc.

Defendant

Procedural Posture

Commercial Contract Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether Globe Metallurgical Inc. was in repudiatory breach of contract for refusing to accept manganese ore containing more than 10% fines below 1/2 inch in size
  2. 2 Whether Westbrook Resources Limited performed its contractual obligations regarding screening of manganese ore
  3. 3 Whether Westbrook's conduct in relation to screening, documentation, and resale was repudiatory

Ratio Decidendi

Globe Metallurgical Inc. repudiated the contract by refusing to accept manganese ore screened over a 1/2 inch screen as contractually agreed, and by indicating it would not pay for or accept delivery of the material. Westbrook Resources Limited performed its obligations under the contract. The proper measure of damages is the difference between the contract price and the market price at the time of breach, as evidenced by the substitute sale to OM Materials. Globe's counterclaim fails.

Court Disposition

Judgment for the claimant; counterclaim dismissed

Orders

  • Damages to be assessed if not agreed, based on findings as to quantity, manganese content, and moisture content
  • Globe to pay Westbrook US$30,025.50 for US attorneys' fees incurred due to breach of exclusive jurisdiction clause