Fortis Bank SA NV v Stemcor UK Ltd [2011] EWHC 538 (Comm) (17 March 2011)

Fortis Bank SA NV v Stemcor UK Ltd [2011] EWHC 538 (Comm) (17 March 2011)

Stemcor's claims in damages and restitution fail because IOB owed no contractual duty to Stemcor under L/Cs 1-3, causation was not established for L/Cs 4-5 as SESA/MSTC would not have taken delivery even if IOB paid, and IOB had no legal liability as consignee under the bills of lading for the charges paid by Stemcor. Thus, Stemcor was not entitled to recover port storage or demurrage charges from IOB.

Citation
[2011] EWHC 538 (Comm)
Parties
Claimant: Fortis Bank S. A./N. V.; Claimant: Stemcor UK Limited; Defendant: Indian Overseas Bank
Jurisdiction
England and Wales
Judgment Date
17 March 2011
Procedural Posture
Commercial Court Claim for Damages and Restitution / Final Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Letters of Credit, Damages for Breach of Contract, Restitution/recoupment, Contribution, Subrogation, Carriage of Goods by Sea, Bills of Lading, Mitigation of Loss
Commercial Law Banking Law Restitution Letters of Credit Damages for Breach of Contract Restitution/recoupment Contribution Subrogation +3 more

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Parties

Fortis Bank S. A./N. V.

Claimant

Stemcor UK Limited

Claimant

Indian Overseas Bank

Defendant

Procedural Posture

Commercial Court Claim for Damages and Restitution / Final Judgment After Trial

Legal Issues

  1. 1 Whether Stemcor is entitled to recover damages from IOB for wrongful failure to honour letters of credit
  2. 2 Whether Stemcor can recover in restitution for port storage and demurrage charges paid to carriers
  3. 3 Whether IOB was in breach of contract vis-à-vis Stemcor under L/Cs 1-3 and 4-5

Ratio Decidendi

Stemcor's claims in damages and restitution fail because IOB owed no contractual duty to Stemcor under L/Cs 1-3, causation was not established for L/Cs 4-5 as SESA/MSTC would not have taken delivery even if IOB paid, and IOB had no legal liability as consignee under the bills of lading for the charges paid by Stemcor. Thus, Stemcor was not entitled to recover port storage or demurrage charges from IOB.

Court Disposition

Claim dismissed

Orders

  • Stemcor's claims in damages and restitution against IOB are dismissed.