ARCOS, LTD. v. LONDON & NORTHERN TRADING COMPANY, LTD.

(1935) 53 Ll L Rep 38

KING'S BENCH DIVISION.

Before Mr. Justice MacKinnon.

Sale of goods-Damages-Rejection by buyers (defendants)-Sale by plaintiffs of "entire production of pitprops available for 1931 shipment"-Various lengths and top diameters-Preliminary questions previously put to Court: (1) Whether the defendants were bound to accept timber felled earlier than the winter of 1930/31; (2) whether the defendants were entitled to receive in each shipment or parcel of a particular length props ranging fairly between specified extreme diameters of tops for such lengths so that by such range there should be approximately 50 per cent. thick and 50 per cent. thin top diameters-Decision of House of Lords as to (1) that the plaintiffs were entitled to ship and that the defendants (subject to their right of rejection on account of quality or condition) were bound to accept overlying timber; as to (2) that the defendants were entitled in each parcel of any particular length of props to receive a fair or reasonable range of top diameters not involving any apportionment by percentages-Reference to Special Referee to report upon question of damages-Reports upon shipped and unshipped goods-Shipped goods which had been rejected sold in open market by sellers-Balance of loss as compared with contract price amounting to £46,625-Right of rejection-"When goods of more than one group are loaded in same steamer each group to be loaded on separate bill of lading"-Pitprops of different lengths included in same bill of lading-Unshipped goods after being stored in Russia until 1932 sold at profit of £67,083-Whether buyers should be credited with that profit- Occupation of storing ground pre-renting use for other pitprops of which there was an unlimited supply and which, sellers alleged, could have been sold at a profit-Cost of storing, 440,000 roubles-Rate of exchange to be applied-"Commercial" or "official" -Adoption by Referee of official rate of 7.42 roubles to the £, amounting with interest to £65,943.