Deutsche Bank Ag v Total Global Steel Ltd

Deutsche Bank Ag v Total Global Steel Ltd

The contracts required TGS to deliver CERs that could in practice be used for compliance under the EUETS. Surrendered CERs could not be so used due to regulatory checks and market practice. TGS breached the contracts by delivering surrendered CERs. Damages are to be assessed as at 22 March 2010, with the value of surrendered CERs set at €3.25 each, resulting in damages of €4,182,000. DB did not fail to mitigate its loss.

Parties
Claimant: Deutsche Bank AG; Defendant: Total Global Steel Ltd
Jurisdiction
England and Wales
Judgment Date
11 May 2012
Procedural Posture
Commercial / Judgment After Trial
Outcome
Claim allowed; judgment for the claimant
Legal Topics
Breach of Contract, Damages, Emissions Trading, Interpretation of Contract Terms, Mitigation of Loss
Contract Law Commercial Law European Union Law Breach of Contract Damages Emissions Trading Interpretation of Contract Terms Mitigation of Loss

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Parties

Deutsche Bank AG

Claimant

Total Global Steel Ltd

Defendant

Procedural Posture

Commercial / Judgment After Trial

Legal Issues

  1. 1 Whether the contracts required delivery of CERs eligible for use under the EUETS
  2. 2 Whether surrendered CERs could be used for compliance under the EUETS
  3. 3 Whether TGS breached the contracts by delivering surrendered CERs

Ratio Decidendi

The contracts required TGS to deliver CERs that could in practice be used for compliance under the EUETS. Surrendered CERs could not be so used due to regulatory checks and market practice. TGS breached the contracts by delivering surrendered CERs. Damages are to be assessed as at 22 March 2010, with the value of surrendered CERs set at €3.25 each, resulting in damages of €4,182,000. DB did not fail to mitigate its loss.

Court Disposition

Claim allowed; judgment for the claimant

Orders

  • Damages awarded to Deutsche Bank AG in the sum of €4,182,000
  • Further submissions invited on costs and final order