Let the force majeure be with principle | Case by Case (Ep. 85)
RTI Ltd (Respondent) v MUR Shipping BV (Appellant)
On this episode Luke and Calum are joined by Alexander Wright KC – A great debate, with varying views and perspectives looking at whether or not a party was required to accept non-contractual performance to overcome a force majeure issue. This a salient case – which will be a reference point for many Force Majeure cases moving forward, as it sets down matters of general principle.
In the case of RTI Ltd v MUR Shipping BV, the central issue was whether a force majeure clause in a contract requires the affected party to accept non-contractual performance to mitigate the event’s effects. The High Court ruled that it does not unless explicitly stated. However, the Court of Appeal, with a majority decision, held that in certain circumstances, the clause might require accepting such performance. The dissenting opinion agreed with the High Court. The case is now being appealed to the Supreme Court for a final decision.