Bominflot Bunkergesellschaft fur Mineralole mbH & Co v Petroplus Marketing AG

Bominflot Bunkergesellschaft fur Mineralole mbH & Co v Petroplus Marketing AG

The gasoil delivered was unstable and not of satisfactory quality for the purposes of the implied term under s.14(2) Sale of Goods Act 1979; instability was not covered directly or indirectly by contractual specifications; Seller breached the implied term and is liable for Buyer’s losses resulting from the breach.

Parties
Claimant: Bominflot Bunkergesellschaft fur Mineralole mbH & Co; Defendant: Petroplus Marketing AG
Jurisdiction
England and Wales
Judgment Date
30 October 2012
Procedural Posture
Commercial / Final Judgment After Trial
Outcome
Claim allowed
Legal Topics
Implied Terms, Satisfactory Quality, Latent Defects, Damages, Mitigation, Remoteness
Contract Law Sale of Goods Implied Terms Satisfactory Quality Latent Defects Damages Mitigation Remoteness

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Parties

Bominflot Bunkergesellschaft fur Mineralole mbH & Co

Claimant

Petroplus Marketing AG

Defendant

Procedural Posture

Commercial / Final Judgment After Trial

Legal Issues

  1. 1 Whether increased sediment levels were caused by vessel contamination or instability of gasoil
  2. 2 Whether gasoil was unstable on delivery and thus not of satisfactory quality
  3. 3 Whether instability is covered by contractual specifications

Ratio Decidendi

The gasoil delivered was unstable and not of satisfactory quality for the purposes of the implied term under s.14(2) Sale of Goods Act 1979; instability was not covered directly or indirectly by contractual specifications; Seller breached the implied term and is liable for Buyer’s losses resulting from the breach.

Court Disposition

Claim allowed

Orders

  • Seller found in breach of contract for supplying unstable gasoil
  • Seller liable to pay damages to Buyer for losses suffered, including diminution in value, additional freight, demurrage, commission, inspection, expert and testing costs, with interest