Certificate not so final: The Mercini Lady in the Court of Appeal


It is highly unusual for trading companies to have a real and urgent interest in a case in the English Court of Appeal. However the Court of Appeal recently heard the appeal by FOB Sellers on the decision of "The Mercini Lady" (KG Bominflot Bunkergellschaft fur Mineralole mbh & Co KG v Petroplus Marketing AG [2009] EWHC 1088 (Comm)(22 May 2009)), and this case requires all traders to watch and listen.

The initial judgment by Mr Justice Field in the Commercial Court caused much controversy for two reasons. First, it exposed FOB sellers to the risk of goods deteriorating after loading, even in a "certificates final on loading" contract. Second, it decided that standard exclusion wording was ineffective based on a very precise and legalistic interpretation of the wording. Reed Smith attended the Court of Appeal hearing to assess whether this controversial position is likely to change.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Reed Smith | Attorney Advertising

Written by:


Reed Smith on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.