Peter Cremer Gmbh v Cooperative Molasses Traders

JurisdictionIreland
CourtSupreme Court
JudgeFinlay C.J.
Judgment Date11 July 1985
Neutral Citation1985 WJSC-SC 1478
Docket Number( )
Date11 July 1985

1985 WJSC-SC 1478

The Supreme Court

Finlay C.J.

Henchy J.

Griffin J.

( 89/95)
PETER CREMER GMBH v. COOPERATIVE MOLASSES TRADERS
In the Matter of the Arbitration
Acts 1954 to 1980

Between

Peter Cremer GMBH and Company
Applicants/Respondents

and

Co-Operative Molasses Traders Limited
Respondents/Appellants

Citations:

ARBITRATION ACT 1954 S41

ARBITRATION ACT 1980 PART III

ARBITRATION ACT 1980 S2

ARBITRATION ACT 1980 S6(1)

ARBITRATION ACT 1980 S7(1)

ARBITRATION ACT 1980 S9(1)

ARBITRATION ACT 1980 S9(2)(d)

ARBITRATION ACT 1980 S9(2)(e)

ARBITRATION ACT 1980 S9(2)(f)

ARBITRATION ACT 1980 S9(4)

ARBITRATION ACT 1980 S9(5)

GAFTA RULES

NEW YORK CONVENTION 10.6.58

Synopsis:

ARBITRATION

Award

Enforcement - London arbitration - Rules of Grain and Feed Trade Association - Application by German company to have arbitrator's award enforced within the State - Respondents denying existence of contract on which arbitration founded - Issue for decision by court - Existence of contract affirmed - Contract including term providing for GFTA arbitration in London - Arbitrator's award enforceable by court - Decision of Costello J. (25/2/85) affirmed - (89/85 - Supreme Court - 11/7/85).

Peter Cremer GmbH v. Co-Operative Molasses Traders

ARBITRATION

Award

Enforcement - London arbitration - Rules of Grain and Feed Trade Association - Decision of Costello J. (25/2/85) affirmed - (89/85 - Supreme Court - 11/7/85).

Peter Cremer GmbH v. Co-Operative Molasses Traders

CONTRACT

Breach

Remedy - Arbitration - Foreign award - Enforcement - London arbitration - Rules of Grain and Feed Trade Association - Application by German company to have arbitrator's award enforced within the State - Respondents denying existence of contract on which arbitration founded - Issue for decision by court - Existence of contract affirmed - Contract including term providing for GFTA arbitration in London - Arbitrator's award enforceable by court - Decision of Costello J. (25/2/85) affirmed - (89/85 - Supreme Court - 11/7/85).

Peter Cremer GmbH v. Co-Operative Molasses Traders

1

Judgment delivered on the 11th day of July 1985 by Finlay C.J. [Nem Diss]

2

This is an appeal brought by the Respondents in the High Court against an Order made by Costello J. on the 25th February 1985 declaring that an award dated the 22nd June 1984 made by an arbitral tribunal in London set up in accordance with the rules of the Grain and Feed Trade Association (GAFTA) ought to be enforced and ordering that the Applicant in pursuance of that award do recover from the Respondent the sum of 165,000 US dollars for principal; 4,690 US dollars for interest to the date of the award; and £785 Sterling for fees and expenses of the arbitration and expenses of the arbitration and£50 Sterling for arbitrator's fee, together with interest of 11 per centum per annum on the principal sum of 165,000 US dollars from the 23rd June 1984 to the date of payment thereof.

Facts
3

Peter Cremer GMBH and Company (Cremer) is a Company incorporated in accordance with the laws of the Federal Republic of Germany having its registered offices in Hamburg. Co-Operative Molasses Traders Limited (Co-Operative Molasses) is a co-operative with Limited liability under the Industrial and Provident Societies Act of 1893 having its registered offices in Dublin.

4

In August 1983 Co-Operative Molasses ordered from Cremer a quantity of molasses consisting of about 6,000 to 7,000 metric tons to be shipped to Dublin. The contract for the supply of this material was arrived at by a series of telexes, letters and telephone conversations. The goods ordered were duly delivered and paid for and the contract completely performed.

5

It is not disputed that in the negotiations for that contract Cremer originally suggested as one of the terms of the contract that arbitration should take place "if any, amicably in Hamburg". Co-Operative Molasses sought an amendment of that term, seeking arbitration "if any, amicably in London". This was accepted by Cremer who finally provided that arbitration should be "if any, GAFTA London". It was agreed this meant in accordance with the rules and regulations of GAFTA in London. Cremer was a member of GAFTA; Co-Operative Molasses was not, but had previously, on the evidence, agreed to that clause in transactions with a member of GAFTA.

6

On the 21st October 1983 negotiations commenced between the parties for a further delivery of molasses. These again were conducted by telex, correspondence and telephone conversation. The amount of the delivery was to be 10,000 tonnes; the date of delivery February/March 1984 and special arrangements with regard to price and delivery were agreed. In the first telex dealing with this transaction, dated 21st October 1983, sent by Cremer to Co-Operative Molasses, a sale is confirmed of 10,000 tonnes of a specified quality, at a specified price, c.i.f. Dublin, with an arrival date and with the clause "All other conditions as per our Contract dated 23rd August 1983". In a subsequent letter written by Cremer to Co-Operative Molasses, dated the 26th October 1983, the Contract is set out in detail and contains the clause "Arbitration, if any, amicably in Hamburg." A request was made that the duplicate of that Contract should be signed and returned but this was not complied with. On the 15th November 1983 Co-Operative Molasses requested an alteration of the original stipulated arrival period from the second half of February/first half of March to arrival in March/April. This was agreed to by Cremer. In January 1984 Co-Operative Molasses sought to vary the amount of the delivery and also the price. This was replied to by a telex from Cremer to Molasses, pointing out that they had a valid contract for 10,000 tonnes for delivery in March/April and calling upon Co-Operative Molasses to honour that contract. A further exchange of telexes then took place with Co-Operative Molasses finally, on the 24th January 1984 repudiating the existence of a contract.

7

Cremer then submitted the dispute which had thus arisen to the arbitration of GAFTA in London. Co-Operative Molasses refused to recognise the authority of that arbitration and did not appear at it or make representations to it.

8

On the 22nd June 1984 the arbitrators appointed by GAFTA issued an award making the following findings:

9

1. That a contract existed between the parties.

10

2. That the contract included a clause providing for arbitration by GAFTA in London.

11

3. That Co-Operative Molasses were in breach of the contract.

12

4. That the sums directed to be paid by Co-Operative Molasses to Cremer by the Order of the High Court already referred to were due as damages for...

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6 cases
  • Dardana Ltd v Yukos Oil Company
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 18 April 2002
    ...were referred on the point was the decision of the Irish Supreme Court in Peter Cremer GmbH & Co. v. Cooperative Molasses Traders Ltd. [1985] ILRM 564. The issue there was whether the parties to a GAFTA award had agreed on arbitration either at all or in London, as opposed to Hamburg. The ......
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  • Aloe Vera of America, Inc v Asianic Food (S) Pte Ltd and Another
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    • High Court (Singapore)
    • 10 May 2006
    ...a re-examination of the Arbitrator’s decision on its merits. 28 Next was Peter Cremer GmbH & Co v Co-operative Molasses Traders Ltd [1985] ILRM 564 (“Peter Cremer”), a decision of the Irish Supreme Court. There the applicants had entered into two contracts with the respondents for the suppl......
  • Yukos Oil Company v Dardana Ltd
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    • Court of Appeal (Civil Division)
    • 18 April 2002
    ...The following cases were referred to in the judgment of Mance LJ: Peter Cremer GmbH & Co v Co-operative Molasses Traders LtdDLRM [1985] ILRM 564. Soleh Boneh International Ltd v Government of the Republic of UgandaUNK [1993] 2 Ll Rep 208. SPP (Middle East) Ltd v Arab Republic of Egypt (1985......
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