Click to view: 

Stockholm Arbitration Report (SAR)

Preview Page SAR 2002 - 2

Subject-matter: When is an expert’s departure from instructions deemed to be material?

Finding: A departure from instructions is material unless it is trivial or de minimis in the sense that it obviously made no possible difference to either party.

Parties:
Claimant: Veba Oil Supply & Trading GmbH (“Veba”/“Buyers”) (Germany)
Respondent: Petrotrade Inc., (“Petrotrade”/”Sellers”) (United Kingdom)

Place of Court Procedures: England

Applicable Law: English

SUMMARY

Background
The parties had entered into a contract in which the respondent sold 25,000 metric tons of gasoil to the claimant. Clause 10 of the contract provided that the quantity and quality of the cargo was to be determined by an independent inspector at the loading installation in Antwerp and that the inspector’s determination was final and binding on both parties.