Fortis Bank SA NV v Stemcor UK Ltd

Fortis Bank SA NV v Stemcor UK Ltd

Stemcor’s claims in damages and restitution fail because IOB was not in breach of contract towards Stemcor under L/Cs 1-3, and for L/Cs 4-5, Stemcor failed to prove that prompt payment by IOB would have resulted in SESA or MSTC taking delivery and paying the charges. IOB owed no liability to the carriers for the charges, so restitutionary claims also fail.

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 (breach of Contract/restitution) / Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Letters of Credit, Damages for Breach of Contract, Restitution, Bills of Lading, Mitigation of Loss, Subrogation
Commercial Law Banking Law International Trade Letters of Credit Damages for Breach of Contract Restitution Bills of Lading Mitigation of Loss +1 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 (breach of Contract/restitution) / Judgment After Trial

Legal Issues

  1. 1 Whether IOB was in breach of contract towards Stemcor under the letters of credit
  2. 2 Whether Stemcor is entitled to damages for port storage and demurrage charges
  3. 3 Whether Stemcor can recover in restitution (recoupment, contribution, subrogation)

Ratio Decidendi

Stemcor’s claims in damages and restitution fail because IOB was not in breach of contract towards Stemcor under L/Cs 1-3, and for L/Cs 4-5, Stemcor failed to prove that prompt payment by IOB would have resulted in SESA or MSTC taking delivery and paying the charges. IOB owed no liability to the carriers for the charges, so restitutionary claims also fail.

Court Disposition

Claim dismissed