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Contracts Keyed to Burton
Transatlantic Financing Corp. v. United States
Citation:
124 U.S. App. D.C. 183, 363 F.2d 312Facts
Transatlantic Financing Corporation (“Transatlantic”) (plaintiff) agreed to transport a cargo ship of wheat from a United States (defendant) Gulf port to a port in Iran. The route was to take Transatlantic’s ship through Gibraltar and the Suez Canal. War broke out and the Suez Canal was invaded by European countries. As a result, the Egyptian Government closed the Suez Canal to traffic. Because of this closure, Transatlantic had to travel a longer route around Africa to make the shipment. The United States refused to provide Transatlantic with additional compensation. Transatlantic sued the United States to recover the extra costs incurred as a result of the longer route.
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