Macromex SrL v. Globex International, Inc.

Case No. 50181T 0036406 (2007)

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Macromex SrL v. Globex International, Inc.

American Arbitration Association International Centre for Dispute Resolution
Case No. 50181T 0036406 (2007)

Facts

Globex International, Inc. (seller) (defendant) was an exporter of food products, including chicken. Macromex SrL (buyer) (plaintiff) was a Romanian company. On April 14, 2006, the parties entered into contracts for the buyer to export chicken to Romania. The contracts, which were governed by the United Nations Convention on Contracts for the International Sale of Goods (CISG) and provided for the arbitration of disputes, called for four deliveries between April 24 and May 29. However, industry practice provided for some delivery-date flexibility. After the parties concluded the contracts, the price of chicken soared, and the seller experienced supply problems. As a result, the seller did not ship all the chicken to the buyer in a timely manner. In May, the buyer urged the seller to send the chicken but did not explicitly declare the seller to be in fundamental breach or set another delivery date. In June, the Romanian government responded to an outbreak of avian flu by banning the import of all chicken that had not been loaded for transport by June 7. When the seller was unable to meet the June 7 deadline, the buyer asked the seller to ship the chicken to a non-Romanian port, as another supplier did. The seller declined, instead selling the chicken to another purchaser at a substantial profit. The buyer commenced an arbitration against the seller.

Rule of Law

Issue

Holding and Reasoning ()

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