Sale of goods

Electrosteel Europe SA v Edil Centro SpA Case C-87/10

Jurisdiction –Place of delivery – Incoterms – Ex Works – Free from the seller’s premises

Facts

This preliminary reference to the Court of Justice of the European Union arose out of a sale of goods contract. The seller was domiciled in Italy, the buyer in France and the goods were sold in Italy. The contract contained a term providing that delivery was to be ‘free from the seller’s premises’ (in the original: ‘Resa: Franco ns. sede’ ) to a carrier and that the goods would finally be transferred to France. When the buyer was asked to pay the price of the goods in Italy, it objected that the Italian court did not have jurisdiction to decide the matter. This, in the opinion of the Italian court might trigger the application of art 5(1)(b) of Council Regulation (EC) No 44/2001 on jurisdiction and the recognition and enforcement of judgments on civil and commercial matters, establishing a jurisdiction additional to the domicile of the defendant. In order to decide whether it was competent to deal with the issue, the Italian court had to determine the place of delivery. Was it the place of the final destination of the goods, ie France, or the place of delivery to the carrier, ie Italy?