Arbitration
CAFI (Commodity & Freight Integrators) DMCC v GTCS Trading DMCC [2025] EWHC 1350 (Comm)
The Commercial Court allowed the claimant buyer (CAFI’s) challenges, to a Grain and Feed Trade Association (GAFTA) Appeal Award made under ss 67 (substantive jurisdiction), 68 (serious procedural irregularity) and 69 (appeal on a point of law) of the Arbitration Act 1996. The defendant (GTCS), as seller of a cargo of Russian milling wheat, had brought an arbitration claim for damages against CAFI for breach of two contracts. The claim was rejected but overturned on appeal. The court determined that the GAFTA Appeal Board erred in finding it had no jurisdiction to interpret the terms of a second contract between the parties and how it impacted their rights and liabilities under the first contract. This error led to the Board exceeding its jurisdiction by holding CAFI liable for damages. The court also granted leave to appeal on a point of law regarding the Board’s approach to determining whether liability for damages had been waived.
Costs
Willis