Hamad M. Aldrees & Partners v Rotex Europe Ltd

Hamad M. Aldrees & Partners v Rotex Europe Ltd

Rotex was in breach of contract by supplying machines with incorrect bottom meshes, which delayed commercial production and caused loss of product. However, Aldrees failed to prove its primary claim for loss of profits due to lack of production records and evidence that the machines, once modified, could not achieve...

Source-derived case information.

Parties
Claimant: Hamad M. Aldrees & Partners; Defendant: Rotex Europe Limited
Jurisdiction
England and Wales
Judgment Date
13 March 2019
Procedural Posture
Commercial Contract Dispute / Final Judgment
Outcome
Claim for loss of profits dismissed; limited damages awarded to claimant; counterclaim dismissed.
Legal Topics
Misrepresentation, Breach of Contract, Exclusion Clauses, Damages, Sale of Goods
Contract Law Commercial Law Misrepresentation Breach of Contract Exclusion Clauses Damages Sale of Goods

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Summary, issues, holding and outcome

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Parties

Hamad M. Aldrees & Partners

Claimant

Rotex Europe Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Final Judgment

Legal Issues

  1. 1 Whether Rotex's machines met the contractual specification and representations regarding throughput and efficiency.
  2. 2 Whether Aldrees suffered recoverable losses due to breach of contract by Rotex.
  3. 3 Whether Rotex was entitled to the balance of the contract price under its counterclaim.

Ratio Decidendi

Rotex was in breach of contract by supplying machines with incorrect bottom meshes, which delayed commercial production and caused loss of product. However, Aldrees failed to prove its primary claim for loss of profits due to lack of production records and evidence that the machines, once modified, could not achieve the contractual throughput. The exclusion clause was not incorporated due to inconsistent reference and lack of attachment in the final contract documents. Rotex's counterclaim for the contract balance failed as satisfactory commissioning was not established. Aldrees was entitled to limited damages for lost production during the period of delay and loss of product due to the...

Court Disposition

Claim for loss of profits dismissed; limited damages awarded to claimant; counterclaim dismissed.

Orders

  • Judgment for Aldrees for SAR 3,716,769 in damages (excluding interest).
  • Rotex's counterclaim for the contract balance dismissed.