BREACH OF CONTRACT - NOT RE-BERTHING VESSEL TO LOAD CARGO – INDEMNITY FOR LOSSES INCURRED EARLIER – CHAIN OF CONTRACTS - REMOTENESS – ERROR OF LAW – ARBITRATION ACT 1996, SECTION 69
In May 2012, Mitsui agreed to sell 60,000 metric tons of Brazilian soybeans to DGO. The cargo was to be delivered to the Santos port by July 31, 2012, with payment through a letter of credit. While loading, the vessel broke its moorings, caused damage to the port equipment, and was detained with the remaining cargo onboard. DGO claimed contract termination, which Mitsui initially contested but later accepted in January 2013. A complex chain of sales and purchases was involved, leading to arbitration. The FOSFA Board of Appeal found DGO breached the contract by not re-berthing a vessel, awarding damages of US$7,007,430 to Mitsui. However, Mitsui's claims for indemnity and losses suffered in the sales chain were rejected due to perceived remoteness. Mitsui appealed, alleging errors in the law regarding remoteness and citing Clause 29 of the Arbitration Act 1996.