SONARWA Ltd v. SALEX CORPORATION Ltd

SONARWA Ltd v. SALEX CORPORATION Ltd

SALEX CORPORATION Ltd, as seller under CFR/FOB terms, was not liable for loss or damage to goods after loading at the port of shipment, as risk passed to the buyer. No evidence was provided of any special agreement making SALEX liable beyond this point. SONARWA Ltd failed to prove SALEX was also the carrier or had...

Source-derived case information.

Citation
RCOMA 0050/12/CS
Parties
Appellant: SONARWA Ltd; Respondent: SALEX CORPORATION Ltd
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
13 June 2014
Case Number
RCOMA 0050/12/CS
Procedural Posture
Commercial Appeal / Supreme Court Judgment
Outcome
Appeal by SONARWA Ltd dismissed; cross-appeal by SALEX CORPORATION Ltd partially allowed.
Legal Topics
Liability for Damaged Goods, Carrier Liability, Insurance Claims, Contract Interpretation, Damages
Commercial Law Insurance Law Liability for Damaged Goods Carrier Liability Insurance Claims Contract Interpretation Damages

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Parties

SONARWA Ltd

Appellant

SALEX CORPORATION Ltd

Respondent

Procedural Posture

Commercial Appeal / Supreme Court Judgment

  1. 1 Whether SALEX CORPORATION Ltd is liable for loss or damage to goods under the contract with BRALIRWA Ltd
  2. 2 Whether SONARWA Ltd is entitled to recover from SALEX CORPORATION Ltd amounts paid for damaged goods
  3. 3 Whether SALEX CORPORATION Ltd is entitled to damages for being sued without basis

Ratio Decidendi

SALEX CORPORATION Ltd, as seller under CFR/FOB terms, was not liable for loss or damage to goods after loading at the port of shipment, as risk passed to the buyer. No evidence was provided of any special agreement making SALEX liable beyond this point. SONARWA Ltd failed to prove SALEX was also the carrier or had further obligations. Thus, SONARWA's claim for reimbursement was unfounded. SALEX was entitled to partial damages for costs incurred in defending the suit, but not for vexatious litigation as SONARWA had a legal right to bring the claim.

Court Disposition

Appeal by SONARWA Ltd dismissed; cross-appeal by SALEX CORPORATION Ltd partially allowed.

Orders

  • SONARWA Ltd to pay SALEX CORPORATION Ltd 1,000,000 Frw in addition to 1,500,000 Frw previously awarded, totaling 2,500,000 Frw in damages and costs.
  • SONARWA Ltd to pay court costs of 15,000 Frw including those from the lower court.