BV Nederlandse Industrie Van Eiprodukten v Rembrandt Enterprises, Inc. [2019]

BV Nederlandse Industrie Van Eiprodukten v Rembrandt Enterprises, Inc. [2019] EWCA Civ 596 — 9 April 2019 (Longmore LJ, Peter Jackson LJ, Coulson LJ)

“In the context of the avian flu epidemic of 2015 R, a US supplier of egg products, contracted with N to fulfil, over two years, R's supply commitments. In light of an agreed but suspicious increase in the sale price and alleged failure to meet required US standards, R suspended performance, causing N to claim loss of profit damages. The first instance judge dismissed the quality issue but granted R rescission on the grounds of N's fraudulent misrepresentation as to prices. The CA dismissed N's appeal based on the test of inducement, drawing a distinction between fraudulent and non-fraudulent misrepresentation: the test in the former is less rigorous, as there is no requirement for the representee to show that he would not have entered into the contract but for the representation, it being sufficient that the fraud was "actively present to his mind".”

Antonino Cordopatri
E. G. Arghyrakis & Co.
10th April 2019