Aston FFI (Suisse) SA v Louis Dreyfus Commodities Suisse SA

Aston FFI (Suisse) SA v Louis Dreyfus Commodities Suisse SA

The contract did not require the first surveyor to be GAFTA-approved, nor did it exclude the buyer’s independent right to reject goods for non-conformity absent a contractually compliant certificate; the Board erred in law by ignoring the totality of evidence and by imposing requirements not stipulated in the contract.

Parties
Claimant: Aston FFI (Suisse) SA; Defendant: Louis Dreyfus Commodities Suisse SA
Jurisdiction
England and Wales
Judgment Date
23 January 2015
Procedural Posture
Appeal Under Arbitration Act 1996 S.69 / Judgment on Appeal From GAFTA Board of Appeal
Outcome
Award set aside; matter remitted to Board of Appeal for reconsideration in light of judgment.
Legal Topics
FOB Contracts, Right of Rejection, Contractual Compliance, Documentary Requirements, GAFTA Rules, Incorporation of Terms
Commercial Law Arbitration FOB Contracts Right of Rejection Contractual Compliance Documentary Requirements GAFTA Rules Incorporation of Terms

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Parties

Aston FFI (Suisse) SA

Claimant

Louis Dreyfus Commodities Suisse SA

Defendant

Procedural Posture

Appeal Under Arbitration Act 1996 S.69 / Judgment on Appeal From GAFTA Board of Appeal

Legal Issues

  1. 1 Whether an FOB Buyer can only reject goods in reliance on a certificate complying with documentary requirements in payment terms
  2. 2 Whether the Board of Appeal was wrong in law to ignore the totality of evidence on contractual compliance

Ratio Decidendi

The contract did not require the first surveyor to be GAFTA-approved, nor did it exclude the buyer’s independent right to reject goods for non-conformity absent a contractually compliant certificate; the Board erred in law by ignoring the totality of evidence and by imposing requirements not stipulated in the contract.

Court Disposition

Award set aside; matter remitted to Board of Appeal for reconsideration in light of judgment.

Orders

  • Award of GAFTA Board of Appeal No. 4342 dated 23rd April 2014 set aside.
  • Matter remitted to Board of Appeal to consider entitlement to reject cargo based on totality of evidence.