Dunavant Enterprises Incorporated v Olympia Spinning & Weaving Mills Ltd

Dunavant Enterprises Incorporated v Olympia Spinning & Weaving Mills Ltd

The exemption clause in the contract does not override or exclude the operation of the invoicing back provisions of the International Cotton Association Bylaws and Rules, specifically Bylaw 201 and Rules 225 and 226. The liability in question arises from the contractual obligation to comply with the close-out provisions, not from a failure to deliver or force majeure event. The appeal is dismissed and the exemption clause is inapplicable to exclude the claimant's liability under the invoicing back mechanism.

Parties
Claimant: Dunavant Enterprises Incorporated; Defendant: Olympia Spinning & Weaving Mills Ltd
Jurisdiction
England and Wales
Judgment Date
29 July 2011
Procedural Posture
Arbitration Appeal / Judgment on Appeal From Arbitration Award
Outcome
Appeal dismissed
Legal Topics
Invoicing Back Clauses, Force Majeure, Exemption Clauses, Interpretation of Trade Bylaws, Arbitration Procedure
Commercial Law Contract Law Arbitration Invoicing Back Clauses Force Majeure Exemption Clauses Interpretation of Trade Bylaws Arbitration Procedure

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Parties

Dunavant Enterprises Incorporated

Claimant

Olympia Spinning & Weaving Mills Ltd

Defendant

Procedural Posture

Arbitration Appeal / Judgment on Appeal From Arbitration Award

Legal Issues

  1. 1 Whether the exemption clause in the contract excluded the claimant's liability under the invoicing back provisions of the International Cotton Association Bylaws and Rules
  2. 2 Whether the invoicing back provisions are overridden by a specific exemption clause
  3. 3 Whether the circumstances amounted to force majeure or other causes beyond the claimant's control

Ratio Decidendi

The exemption clause in the contract does not override or exclude the operation of the invoicing back provisions of the International Cotton Association Bylaws and Rules, specifically Bylaw 201 and Rules 225 and 226. The liability in question arises from the contractual obligation to comply with the close-out provisions, not from a failure to deliver or force majeure event. The appeal is dismissed and the exemption clause is inapplicable to exclude the claimant's liability under the invoicing back mechanism.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed. The question whether the defendant’s claim was excluded by the exemption clause is answered in the negative.