KMG International NV v Chen & Anor

KMG International NV v Chen & Anor

The rule against reflective loss is substantive and falls within Article 15 of Rome II; it is not an overriding mandatory provision nor a rule of public policy under Articles 16 or 26. Dutch law governs the recoverability of reflective loss in this claim. The Defendants' applications to strike out and for summary judgment fail; the Claimant succeeds on the issues determined.

Parties
Claimant: KMG INTERNATIONAL NV; Defendant: Melanie Anne Chen; Defendant: Chipper Management Limited
Jurisdiction
England and Wales
Judgment Date
13 September 2019
Procedural Posture
Commercial Court Claim / Ruling on Strike Out and Summary Judgment Applications
Outcome
Defendants' applications to strike out and for summary judgment on Dutch law claims dismissed; Claimant succeeds on issues determined.
Legal Topics
Reflective Loss, Rome II Regulation, Substance Vs Procedure, Overriding Mandatory Provisions, Public Policy Exception
Conflict of Laws Company Law Tort Law Reflective Loss Rome II Regulation Substance Vs Procedure Overriding Mandatory Provisions Public Policy Exception

Case Brief

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Parties

KMG INTERNATIONAL NV

Claimant

Melanie Anne Chen

Defendant

Chipper Management Limited

Defendant

Procedural Posture

Commercial Court Claim / Ruling on Strike Out and Summary Judgment Applications

Legal Issues

  1. 1 Whether the rule against reflective loss is procedural or substantive under Rome II Regulation
  2. 2 Whether the rule against reflective loss is an overriding mandatory provision under Article 16 of Rome II
  3. 3 Whether the application of Dutch law is manifestly incompatible with English public policy under Article 26 of Rome II

Ratio Decidendi

The rule against reflective loss is substantive and falls within Article 15 of Rome II; it is not an overriding mandatory provision nor a rule of public policy under Articles 16 or 26. Dutch law governs the recoverability of reflective loss in this claim. The Defendants' applications to strike out and for summary judgment fail; the Claimant succeeds on the issues determined.

Court Disposition

Defendants' applications to strike out and for summary judgment on Dutch law claims dismissed; Claimant succeeds on issues determined.

Orders

  • Order to be drawn up giving effect to this judgment.