COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM LEEDS MERCANTILE COURT
HH JUDGE BEHRENS
5M006000
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE KEENE
and
LADY JUSTICE SMITH
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Bulkhaul Limited |
Appellant |
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- and - |
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Rhodia Organique Fine Ltd |
Respondent |
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Mr Paul McGrath (instructed by Messrs Burges Salmon) for the Respondent
Hearing date : 11 December 2008
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Lady Justice Smith:
"First, a third party, Lanxess offered £20,000 for each of the tanks in late 2004. Second the tanks were manufactured with a life expectancy of 10 years and thus in the autumn of 2004 would be expected to have a further 5 to 6 years of use before they were scrapped. Third, I accept the evidence of Mr Merfield as to the state and extent of the HF market. Fourth, it appears from the 2004 discussions that the cost of new tanks had increased since 1999 thus increasing the potential value of second hand tanks. Fifth, the approaches that have been made between 2004 and 2008 are to my mind an indication that the tanks are not valueless. Sixth, although Bulkhaul has reacted to introductions made by Rhodia they have not been pro-active in attempting to sell the tanks. Indeed, the 2005 (I think he may have meant 2004) correspondence indicates that Bulkhaul are reluctant to sell the tanks. It would appear that on at least one occasion, Addlestone Keane (Bulkhaul's solicitors) advised Bulkhaul that they did not need to sell the tanks. As already noted, Bulkhaul is a large company with many connections in the industry. Indeed, the recent evidence in relation to the Argentine company demonstrates that Bulkhaul are not making stringent efforts to sell the tanks. They were informed on 19 September 2007 that the invitation to view the tanks had not been received, yet they seem to have made no effort to follow this up between September 2007 and February 2008."
Lord Justice Keene: I agree.
Lord Justice Sedley: I also agree.