Tradigrain SA & Ors v Intertek Testing Services (ITS) Canada Ltd. & Anor [2006] EWHC 778 (Comm) (10 April 2006)

Tradigrain SA & Ors v Intertek Testing Services (ITS) Canada Ltd. & Anor [2006] EWHC 778 (Comm) (10 April 2006)

The waiver of recourse clause is effective except in cases of gross negligence by formally appointed directors. No gross negligence was established against any board member of CBI or Mr Rackham. Therefore, the claim fails and no recourse is available against CBI under the insurance policy. The limitation clause, if applicable, would limit liability to fifteen times the monthly storage fee, but this issue does not arise due to the failure of the claim.

Citation
[2006] EWHC 778 (Comm)
Parties
Claimant: Tradigrain S.A.; Claimant: Societa Italiana Assicurazioni e Riassicurazioni (SIAT) S.p.A. and Others; Defendant: Intertek Testing Services (ITS) Canada Limited; Defendant: Caleb Brett India Pvt Limited
Jurisdiction
England and Wales
Judgment Date
10 April 2006
Procedural Posture
Commercial Claim for Damages (conversion and Breach of Contract) / Final Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Conversion, Gross Negligence, Waiver of Recourse, Limitation of Liability, Subrogation, Collateral Management Agreements
Commercial Law Insurance Law Contract Law Tort Law Conversion Gross Negligence Waiver of Recourse Limitation of Liability +2 more

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Parties

Tradigrain S.A.

Claimant

Societa Italiana Assicurazioni e Riassicurazioni (SIAT) S.p.A. and Others

Claimant

Intertek Testing Services (ITS) Canada Limited

Defendant

Caleb Brett India Pvt Limited

Defendant

Procedural Posture

Commercial Claim for Damages (conversion and Breach of Contract) / Final Judgment After Trial

Legal Issues

  1. 1 Interpretation of 'representative' in waiver of recourse clause under German law
  2. 2 Definition and application of 'gross negligence' under German law
  3. 3 Applicability and calculation of limitation of liability clause in CMA

Ratio Decidendi

The waiver of recourse clause is effective except in cases of gross negligence by formally appointed directors. No gross negligence was established against any board member of CBI or Mr Rackham. Therefore, the claim fails and no recourse is available against CBI under the insurance policy. The limitation clause, if applicable, would limit liability to fifteen times the monthly storage fee, but this issue does not arise due to the failure of the claim.

Court Disposition

Claim dismissed