Scipion Active Trading Fund v Vallis Group Ltd

Scipion Active Trading Fund v Vallis Group Ltd

Scipion is entitled to recover damages for the loss of the copper scrap as bailor with possessory rights under the CMA, without needing to prove the validity of the Moroccan law pledge. The absence of a statutory list under Article 378 of the Moroccan Code of Commerce rendered the pledge invalid, but this did not affect Scipion’s possessory claim. The measure of loss is the value of the lost goods as at 9 October 2017, subject to deduction for the clause 8.2 exemption and credits for the value of remaining goods and recoveries. Scipion did not fail to mitigate its loss regarding the remaining goods. Clause 8.2 of the CMA entitles Vallis to an exemption for the first 3% of the lost goods’...

Parties
Claimant: Scipion Active Trading Fund; Defendant: Vallis Group Limited (formerly Vallis Commodities Limited)
Jurisdiction
England and Wales
Judgment Date
05 June 2020
Procedural Posture
Commercial Claim (breach of Contract, Bailment, Damages) / Final Judgment After Trial
Outcome
Claim allowed in part; damages awarded to Scipion subject to deductions and limits as specified.
Legal Topics
Measure of Damages, Possessory Rights, Security Interests, Mitigation of Loss, Foreign Law (moroccan Law), Estoppel, Indemnity Clauses
Contract Law Commercial Law Bailment Conflict of Laws Measure of Damages Possessory Rights Security Interests Mitigation of Loss +3 more

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Parties

Scipion Active Trading Fund

Claimant

Vallis Group Limited (formerly Vallis Commodities Limited)

Defendant

Procedural Posture

Commercial Claim (breach of Contract, Bailment, Damages) / Final Judgment After Trial

Legal Issues

  1. 1 Is Scipion entitled to recover damages for the loss of copper scrap under the CMA regardless of the validity of the Moroccan law pledge?
  2. 2 Does the absence of a statutory list under Article 378 of the Moroccan Code of Commerce render the pledge invalid?
  3. 3 What is the correct measure and date of assessment of loss?

Ratio Decidendi

Scipion is entitled to recover damages for the loss of the copper scrap as bailor with possessory rights under the CMA, without needing to prove the validity of the Moroccan law pledge. The absence of a statutory list under Article 378 of the Moroccan Code of Commerce rendered the pledge invalid, but this did not affect Scipion’s possessory claim. The measure of loss is the value of the lost goods as at 9 October 2017, subject to deduction for the clause 8.2 exemption and credits for the value of remaining goods and recoveries. Scipion did not fail to mitigate its loss regarding the remaining goods. Clause 8.2 of the CMA entitles Vallis to an exemption for the first 3% of the lost goods’...

Court Disposition

Claim allowed in part; damages awarded to Scipion subject to deductions and limits as specified.

Orders

  • Damages equal to the value of the lost goods as at 9 October 2017, less the value of the clause 8.2 exemption (3% of total goods), plus statutory interest (rate and basis to be determined), subject to a cap of the net amount outstanding under the facility (including interest), less recoveries and the value of...
  • Further submissions to be heard on quantification and interest.