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Torts Keyed to Epstein
BV Nederlandse Industrie Van Eiprodukten v. Rembrandt Enterprises, Inc.
Citation:
[2019] EWCA Civ 596Facts
The avian flu struck the US in April 2015, causing disastrous effects on suppliers of egg products, like the plaintiff which had to destroy more than half of its own birds. To honor its commitments to buyers, the plaintiff had to find a new supply of egg products. It found the defendant Netherlands-based supplier and made a contract to buy 4200 metric tons of egg product over a two year period for set prices, provided that the procedures in the Netherlands satisfied US regulation authorities supervising the egg business. The relevant US authorities gave approval June 1, 2015. Before that approval came through, the defendant emailed the plaintiff claiming that there were extra regulatory costs and the prices would have to be increased. The plaintiff asked for a breakdown of the extra costs, which the defendant sent, and the plaintiff agreed to the increase in prices. The defendant later informed the plaintiff that its sister company Henningsen would supply some of the product and that Henningsen’s operations had also been approved by the relevant US authorities. As egg prices began to fall, the plaintiff claimed that the defendant was failing to meet US regulations. The defendant started proceedings for loss of profit due to the suspension of the contract, and the plaintiff claimed that the defendant acted fraudulently in calculating the price increase, as the increase included the element of profit, rather than just the cost of compliance with US standards.
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