The sellers (Rolimpex), a state trading organisation, tried to rely on the actions of their own government as a defence to claims for non-performance of commercial contracts.
Held: The sellers were not an organ or department of the Polish government but an independent state enterprise, and had a good defence to liability, consequent upon an export ban imposed by the Polish government.
Viscount Dilhorne said: ‘The respondents are an organisation of the state. Under Polish law they have a legal personality. Though subject to directions by the appropriate minister who can tell them ‘what to do and how to do it’, as a state enterprise they make their own decisions about their commercial activities. They decide with whom they will do business and on what terms and they have considerable freedom in their day to day activities. They are managed on the basis of economic accountability and are expected to make a profit. They arbitrators . . rightly found as a fact that the respondents were not so closely connected with the government of Poland as to be precluded from relying on the ban imposed by the decree as government intervention.
The appellants also asserted that the respondents bought and sold for the state. This while no doubt true, does not . . help the appellants. The facts found by the arbitrators . . show that they were not a department of the government but have a separate identity. They were, it was found as a fact, employed as ‘a commission merchant’ to sell sugar intended for export on behalf of Sugar Industry Enterprises which were also state enterprises. ‘
Judges:
Lord Wilberforce, Lord Salmon
Citations:
[1979] AC 351
Jurisdiction:
England and Wales
Cited by:
Cited – Okta Crude Oil Refinery A D v Mamidoil-Jetoil Greek Petroleum Company S A and Another CA 17-Jul-2003
The parties had contracted to allow an exclusive right to deliver oil by tanker and to sell into Macedonia. The defendants claimed they were overborn, and claimed exemption under a force majeure clause.
Held: The acts which had made the . .
Cited – Okta Crude Oil Refinery A D v Mamidoil-Jetoil Greek Petroleum Company S A and Another CA 17-Jul-2003
The parties had contracted to allow an exclusive right to deliver oil by tanker and to sell into Macedonia. The defendants claimed they were overborn, and claimed exemption under a force majeure clause.
Held: The acts which had made the . .
Lists of cited by and citing cases may be incomplete.
Contract, Company, International
Updated: 04 July 2022; Ref: scu.184744
