Case Law - Art. 6
Case Law - Art. 6
C/ABSTRACTS/51
General Assembly Distr.: General
26 January 2006
Original: English
Contents
Page
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A/CN.9/SER.C/ABSTRACTS/51
Introduction
This compilation of abstracts forms part of the system for collecting and
disseminating information on Court decisions and arbitral awards relating to
Conventions and Model Laws that emanate from the work of the United Nations
Commission on International Trade Law (UNCITRAL). Information about the
features of that system and about its use is provided in the User Guide
(A/CN.9/SER.C/GUIDE/1/REV.1). CLOUT documents are available on the
UNCITRAL website (http://www.uncitral.org).
Issues 37 and 38 of CLOUT introduced several new features. First, the table of
contents on the first page lists the full citations to each case contained in this set of
abstracts, along with the individual articles of each text which are interpreted by the
Court or arbitral tribunal. Second, the Internet address (URL) of the full text of the
decisions in their original language are included, along with Internet addresses of
translations in official United Nations language(s), where available in the heading to
each case (please note that references to websites other than official United Nations
websites do not constitute an endorsement by the United Nations or by UNCITRAL
of that website; furthermore, websites change frequently; all Internet addresses
contained in this document are functional as of the date of submission of this
document). Third, abstracts on cases interpreting the UNCITRAL Model Arbitration
Law now include keyword references which are consistent with those contained in
the Thesaurus on the UNCITRAL Model Law on International Commercial
Arbitration, prepared by the UNCITRAL Secretariat in consultation with National
Correspondents, and in the forthcoming UNCITRAL Digest on the UNCITRAL
Model Law on International Commercial Arbitration. Finally, comprehensive
indices are included at the end, to facilitate research by CLOUT citation,
jurisdiction, article number, and (in the case of the Model Arbitration Law)
keyword.
Abstracts have been prepared by National Correspondents designated by their
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The court further found that the parties had not agreed to exclude these obligations
as per art. 6 CISG.
The court did, however, grant summary judgment with respect to the buyer’s claims
for damages for consequential losses. The court stated that the contract term
excluding such damages was enforceable according to art. 6 CISG. It also stated that
the buyer had failed to produce evidence that the losses were foreseeable by the
seller (art. 74 CISG).
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in international trade even if their use is not global. The relevant Incoterm states
that the risk of loss passes when the goods pass the ship’s rail. Having appointed a
third party to inspect the gasoline before shipment, the buyer ought to have
discovered the nonconformity (“defect”) before the gasoline was shipped according
to art. 39(1) CISG. Only if the seller “knew or could not have been unaware” of the
nonconformity at the time that risk passed would the seller be responsible on the
basis of art. 40 CISG.
The appellate court therefore reversed the lower court decision and remanded the
case to determine whether the seller had provided nonconforming gasoline by
failing to add sufficient gum inhibitor.
Case 576: CISG 1 (1) (a); 8 (3); 11; 14; 18; 19 (3); 23; 29
United States: U.S. [Federal] Court of Appeals, Ninth Circuit; No. 02 15727
5 May 2003
Chateau des Charmes Wines Ltd. v. Sabaté USA Inc.
Published in English: Federal Reporter (Third Series) 328, 528;
http://www.ca9.uscourts.gov/ca9/newopinions.nsf/1A2AF3B55A2B5FC988256
D1A007A6C99/$file/0215727.pdf?openelement
Abstract prepared by Peter Winship, National Correspondent
The issue before the court was whether it should dismiss the suit because the parties
had agreed to an exclusive forum selection clause designating a foreign court.
The buyer, a company in Ontario, Canada, concluded several contracts with a
corporation, with its place of business in the United States, to purchase specialty
wine corks manufactured by that corporation’s parent company in France. The
parent company supplied the corks but the buyer alleged that contrary to the seller’s
representations the corks did not prevent “cork taint,” a distasteful flavour left by
some corks. The buyer brought suit for breach of contract against both the parent
and subsidiary companies. The sellers moved to dismiss the suit on the ground that
the buyer was bound by a forum selection clause printed in the sellers’ invoices paid
by the buyer. The district court dismissed the suit and the buyer appealed.
The appellate court stated that the Convention governed whether the parties had
agreed to a choice of forum clause because the parties had their places of business
in different Contracting States pursuant to art. 1(1)(a) CISG.
The court found that the forum selection clause on the invoices was not binding
because the clause materially altered the offer as per art. 19(3) CISG. The court also
found no evidence that the buyer had affirmatively agreed to the clause under
art. 8(3) CISG. The appellate court therefore reversed the district court’s dismissal
of the case.
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Shuttle Packaging Systems, L.L.C. v. Tsonakis, Ina S.A. and Ina Plastics
Corporation
Published in English: 2001 U.S. Dist. LEXIS 21630; 2001 WL 34046276
Abstract prepared by Peter Winship, National Correspondent
The issue before the court was whether it should issue a preliminary injunction
forbidding the seller from making sales in breach of a non-competition agreement.
A company with its place of business in the United States concluded a contract with
two companies, one of which had its place of business in Greece, for the purchase of
equipment to be used to manufacture plastic gardening pots. The contract provided
that the parties would conclude a non-competition agreement and they subsequently
did so. The sellers delivered the equipment. The buyer later ceased to make the
agreed progress payments, alleging that the equipment was nonconforming and that
the sellers had breached the non-competition agreement. The buyer brought suit
claiming breach of the non-competition agreement, breach of contract, and breach
of warranty. It asked the court to issue a preliminary injunction with respect to the
breach of the non-competition agreement.
The court declined to issue a preliminary injunction. It concluded, among other
matters, that the buyer was unlikely to succeed at a trial on the merits.
In a preliminary assessment, the court found that the Convention was the governing
law with respect to all issues other than the non-competition agreement. The court
concluded that the buyer had committed a fundamental breach by failing to make
agreed progress payments. On the basis of art. 25 CISG. This entitled the sellers to
avoid the contract of sale and non-competition agreement or to suspend their
obligations under these agreements pursuant to arts. 64, 71-73 CISG. The court also
concluded that the alleged nonconformities in the equipment did not constitute a
fundamental breach by the sellers.
The court applied the Convention when rejecting several arguments made by the
sellers. In response to the defense that there was no consideration for the
non-competition agreement, the court ruled that the agreement was supported by
consideration for the contract of sale and that the Convention (art. 29 CISG)
provided that contract modifications are enforceable without regard to
consideration. In response to the argument that the territory covered by the
non-competition agreement was not sufficiently defined, the court applied the
Convention’s rules on the meaning of the parties’ statements (art. 8 CISG) and
course of dealing (art. 9 CISG) to interpret the agreement as sufficiently definite. In
response to the sellers’ argument that they were not bound by the non-competition
agreement because the buyer had breached the sales transaction first by failing to
duly notify the sellers of the alleged nonconformities (arts. 38, 39 CISG), the court
found that notice was timely because the equipment was unique, complicated,
delivered in installments and subject to training and on-going repairs.
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Case 579: CISG 1 (1) (a); 4 (a); 7 (1); 9; 11; 14 (1); 16 (2) (b); 18 (3); 60 (a)
United States: U.S. [Federal] District Court, Southern District of New York;
Nos. 98CIV861 (RWS), 99CIV3607 (RWS)
10 May 2002; 16 August 2002 (opinion on rehearing)
Geneva Pharmaceuticals Technology Corp. v. Barr Laboratories, Inc. et al.
Published in English:
(1) Federal Supplement (Second Series) 201, 236
(2) Opinion on rehearing: 2003 U.S. Dist. LEXIS 15442, 2002 Westlaw
1933881,
http://www.cisg.law.pace.edu/cisg/wais/db/cases2/020821u1.html
Abstract prepared by Peter Winship, National Correspondent
The issues before the court included whether the plaintiff’s claims of breach of
contract, promissory estoppel, negligence and negligent misrepresentation should be
dismissed on the ground that there was no genuine issue as to material fact and the
alleged seller was entitled to judgment as a matter of law.
The plaintiff, a New Jersey corporation with its place of business in the
United States, sought to develop, manufacture and distribute a generic
anti-coagulant drug to treat blood clots. To develop the drug, the plaintiff obtained
sample amounts of clathrate from defendant, a company with its place of business in
Ontario, Canada. The defendant also supplied a reference letter in support of the
plaintiff’s application to the Federal Drug Administration for approval to
manufacture and distribute the anti-coagulant drug. Prior to FDA approval, the
defendant concluded an exclusive purchase agreement with a third party. Following
FDA approval, plaintiff sent a purchase order to defendant for 750 kg. of clathrate.
The defendant did not accept the plaintiff’s order and denied that it was obligated to
sell calthrate to the plaintiff. The plaintiff sued the defendant, alleging, among other
claims, that the defendant had breached a contract, was estopped from rejecting the
order, had been negligent and had made negligent misrepresentations. The defendant
moved for summary judgment on these claims.
The court concluded that the Convention governed the breach of contract claim. The
court found that the plaintiff had alleged facts, including an industry usage that
buyers could rely on implied supply commitments, that would support a finding that
the plaintiff’s initial proposal was an offer (art. 14(1) CISG). Noting that the
plaintiff alleged an industry usage that the provision of a reference letter is an
acceptance, the court also found that there were sufficient facts to support a finding
that the defendant had accepted the offer based on art. 18(3) CISG. The court also
found that there was consideration to support the alleged contract and that the
contract was therefore not invalid under applicable domestic law pursuant to
art. 4(a) CISG. Under the alleged “implied-in-fact” contract, defendant was
obligated to supply calthrate if the plaintiff gave it commercially reasonable notice
of an order. The court declined to render summary judgment on this claim because
there were material facts in dispute.
With respect to the plaintiff’s claim under domestic law that it had relied on
defendant’s promise so that the promise was binding as if it were a contract, the
court concluded that this claim was not preempted by the Convention. The court
distinguished plaintiff’s claim from claims specifically addressed by the Convention
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(art. 16(2)(b) CISG). The court declined to render summary judgment on this claim
because there were material facts in dispute.
With respect to the claims of negligence and negligent misrepresentation, the court
concluded that the claims were outside the scope of the Convention. Applying
domestic law, the court rendered summary judgment for the defendant on these
claims.
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Case 577: United States: U.S. [Federal] District Court, Northern District of
Illinois; No. 01 CV 4447, Chicago Prime Packers, Inc. v. Northam Food Trading
Co. (28 May 2003)
Case 579: United States: U.S. [Federal] District Court, Southern District of New
York; Nos. 98CIV861 (RWS), 99CIV3607 (RWS), Geneva Pharmaceuticals
Technology Corp. v. Barr Laboratories, Inc. et al. (10 May 2002; 16 August 2002—
opinion on rehearing)
Case 580: United States: U.S. [Federal] Court of Appeals, Fourth Circuit; No. 00
1125, Schmitz-Werke GmbH + Co. v. Rockland Industries, Incorporated
(21 June 2002)
CISG 4 (a)
Case 579: United States: U.S. [Federal] District Court, Southern District of New
York; Nos. 98CIV861 (RWS), 99CIV3607 (RWS), Geneva Pharmaceuticals
Technology Corp. v. Barr Laboratories, Inc. et al. (10 May 2002; 16 August 2002—
opinion on rehearing)
CISG 6
Case 574: United States: U.S. [Federal] District Court for the Northern District of
Illinois; No. 01 CV 5938, Ajax Tool Works, Inc. v. Can Eng Manufacturing Ltd.
(29 January 2003)
Case 575: United States: [U.S.] Court of Appeals, Fifth Circuit; No. 02 20166, BP
Oil International, Ltd. and BP Exploration & Oil, Inc. v. Empresa Estatal Petroleos
de Ecuador et al. (11 June 2003; corrected 7 July 2003)
CISG 7
Case 580: United States: U.S. [Federal] Court of Appeals, Fourth Circuit;
No. 00 1125, Schmitz-Werke GmbH + Co. v. Rockland Industries, Incorporated
(21 June 2002)
CISG 7 (1)
Case 575: United States: [U.S.] Court of Appeals, Fifth Circuit; No. 02 20166, BP
Oil International, Ltd. and BP Exploration & Oil, Inc. v. Empresa Estatal Petroleos
de Ecuador et al. (11 June 2003; corrected 7 July 2003)
Case 579: United States: U.S. [Federal] District Court, Southern District of New
York; Nos. 98CIV861 (RWS), 99CIV3607 (RWS), Geneva Pharmaceuticals
Technology Corp. v. Barr Laboratories, Inc. et al. (10 May 2002; 16 August 2002—
opinion on rehearing)
CISG 7 (2)
Case 574: United States: U.S. [Federal] District Court for the Northern District of
Illinois; No. 01 CV 5938, Ajax Tool Works, Inc. v. Can Eng Manufacturing Ltd.
(29 January 2003)
CISG 8
Case 578: United States: U.S. [Federal] District Court for the Western District of
Michigan; No. 1:01-691, Shuttle Packaging Systems, L.L.C. v. Tsonakis, Ina S.A.
and Ina Plastics Corporation (17 December 2001)
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CISG 8 (3)
Case 576: United States: U.S. [Federal] Court of Appeals, Ninth Circuit;
No. 02 15727, Chateau des Charmes
CISG 9
Case 578: United States: U.S. [Federal] District Court for the Western District of
Michigan; No. 1:01-691, Shuttle Packaging Systems, L.L.C. v. Tsonakis, Ina S.A.
and Ina Plastics Corporation (17 December 2001)
Case 579: United States: U.S. [Federal] District Court, Southern District of New
York; Nos. 98CIV861 (RWS), 99CIV3607 (RWS), Geneva Pharmaceuticals
Technology Corp. v. Barr Laboratories, Inc. et al. (10 May 2002; 16 August 2002—
opinion on rehearing)
CISG 9 (2)
Case 575: United States: [U.S.] Court of Appeals, Fifth Circuit; No. 02 20166, BP
Oil International, Ltd. and BP Exploration & Oil, Inc. v. Empresa Estatal Petroleos
de Ecuador et al. (11 June 2003; corrected 7 July 2003)
CISG 11
Case 576: United States: U.S. [Federal] Court of Appeals, Ninth Circuit;
No. 02 15727, Chateau des Charmes
Case 579: United States: U.S. [Federal] District Court, Southern District of New
York; Nos. 98CIV861 (RWS), 99CIV3607 (RWS), Geneva Pharmaceuticals
Technology Corp. v. Barr Laboratories, Inc. et al. (10 May 2002; 16 August 2002—
opinion on rehearing)
CISG 14
Case 576: United States: U.S. [Federal] Court of Appeals, Ninth Circuit;
No. 02 15727, Chateau des Charmes
CISG 14 (1)
Case 579: United States: U.S. [Federal] District Court, Southern District of New
York; Nos. 98CIV861 (RWS), 99CIV3607 (RWS), Geneva Pharmaceuticals
Technology Corp. v. Barr Laboratories, Inc. et al. (10 May 2002; 16 August 2002—
opinion on rehearing)
CISG 16 (2) (b)
Case 579: United States: U.S. [Federal] District Court, Southern District of New
York; Nos. 98CIV861 (RWS), 99CIV3607 (RWS), Geneva Pharmaceuticals
Technology Corp. v. Barr Laboratories, Inc. et al. (10 May 2002; 16 August 2002—
opinion on rehearing)
CISG 18
Case 576: United States: U.S. [Federal] Court of Appeals, Ninth Circuit;
No. 02 15727, Chateau des Charmes
CISG 18 (3)
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Case 579: United States: U.S. [Federal] District Court, Southern District of New
York; Nos. 98CIV861 (RWS), 99CIV3607 (RWS), Geneva Pharmaceuticals
Technology Corp. v. Barr Laboratories, Inc. et al. (10 May 2002; 16 August 2002—
opinion on rehearing)
CISG 19 (3)
Case 576: United States: U.S. [Federal] Court of Appeals, Ninth Circuit;
No. 02 15727, Chateau des Charmes Wines Ltd. v. Sabaté USA Inc. (5 May 2003)
CISG 23
Case 576: United States: U.S. [Federal] Court of Appeals, Ninth Circuit;
No. 02 15727, Chateau des Charmes Wines Ltd. v. Sabaté USA Inc. (5 May 2003)
CISG 25
Case 578: United States: U.S. [Federal] District Court for the Western District of
Michigan; No. 1:01-691, Shuttle Packaging Systems, L.L.C. v. Tsonakis, Ina S.A.
and Ina Plastics Corporation (17 December 2001)
CISG 29
Case 576: United States: U.S. [Federal] Court of Appeals, Ninth Circuit; No. 02
15727, Chateau des Charmes Wines Ltd. v. Sabaté USA Inc. (5 May 2003)
Case 578: United States: U.S. [Federal] District Court for the Western District of
Michigan; No. 1:01-691, Shuttle Packaging Systems, L.L.C. v. Tsonakis, Ina S.A.
and Ina Plastics Corporation (17 December 2001)
CISG 30
Case 574: United States: U.S. [Federal] District Court for the Northern District of
Illinois; No. 01 CV 5938, Ajax Tool Works, Inc. v. Can Eng Manufacturing Ltd.
(29 January 2003)
CISG 35
Case 574: United States: U.S. [Federal] District Court for the Northern District of
Illinois; No. 01 CV 5938, Ajax Tool Works, Inc. v. Can Eng Manufacturing Ltd.
(29 January 2003)
CISG 35 (2) (b)
Case 580: United States: U.S. [Federal] Court of Appeals, Fourth Circuit;
No. 00 1125, Schmitz-Werke GmbH + Co. v. Rockland Industries, Incorporated
(21 June 2002)
CISG 36 (1)
Case 575: United States: [U.S.] Court of Appeals, Fifth Circuit; No. 02 20166, BP
Oil International, Ltd. and BP Exploration & Oil, Inc. v. Empresa Estatal Petroleos
de Ecuador et al. (11 June 2003; corrected 7 July 2003)
CISG 38
Case 577: United States: U.S. [Federal] District Court, Northern District of
Illinois; No. 01 CV 4447, Chicago Prime Packers, Inc. v. Northam Food Trading
Co. (28 May 2003)
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Case 578: United States: U.S. [Federal] District Court for the Western District of
Michigan; No. 1:01-691, Shuttle Packaging Systems, L.L.C. v. Tsonakis, Ina S.A.
and Ina Plastics Corporation (17 December 2001)
CISG 39
Case 577: United States: U.S. [Federal] District Court, Northern District of
Illinois; No. 01 CV 4447, Chicago Prime Packers, Inc. v. Northam Food Trading
Co. (28 May 2003)
Case 578: United States: U.S. [Federal] District Court for the Western District of
Michigan; No. 1:01-691, Shuttle Packaging Systems, L.L.C. v. Tsonakis, Ina S.A.
and Ina Plastics Corporation (17 December 2001)
CISG 39 (1)
Case 575: United States: [U.S.] Court of Appeals, Fifth Circuit; No. 02 20166, BP
Oil International, Ltd. and BP Exploration & Oil, Inc. v. Empresa Estatal Petroleos
de Ecuador et al. (11 June 2003; corrected 7 July 2003)
CISG 40
Case 575: United States: [U.S.] Court of Appeals, Fifth Circuit; No. 02 20166,
BP Oil International, Ltd. and BP Exploration & Oil, Inc. v. Empresa Estatal
Petroleos de Ecuador et al. (11 June 2003; corrected 7 July 2003)
CISG 60 (a)
Case 579: United States: U.S. [Federal] District Court, Southern District of New
York; Nos. 98CIV861 (RWS), 99CIV3607 (RWS), Geneva Pharmaceuticals
Technology Corp. v. Barr Laboratories, Inc. et al. (10 May 2002; 16 August 2002—
opinion on rehearing)
CISG 64
Case 578: United States: U.S. [Federal] District Court for the Western District of
Michigan; No. 1:01-691, Shuttle Packaging Systems, L.L.C. v. Tsonakis, Ina S.A.
and Ina Plastics Corporation (17 December 2001)
CISG 71-73
Case 578: United States: U.S. [Federal] District Court for the Western District of
Michigan; No. 1:01-691, Shuttle Packaging Systems, L.L.C. v. Tsonakis, Ina S.A.
and Ina Plastics Corporation (17 December 2001)
CISG 74
Case 574: United States: U.S. [Federal] District Court for the Northern District of
Illinois; No. 01 CV 5938, Ajax Tool Works, Inc. v. Can Eng Manufacturing Ltd.
(29 January 2003)
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