AIG Europe SA and Anr v MIH Scrap Metals International LLC and Ors - US District Court (Western District of New York)(Richard J Arcara DJ) – 6 July 2010

Conflict of laws – Jurisdiction - Delaware corporation bringing proceedings against suppliers and survey companies alleging fraud and negligent misrepresentation relating to shipment of copper cathodes from Tanzania – Defendants bringing motions to dismiss complaint for lack of jurisdiction – Whether court had jurisdiction – Whether complaint should be dismissed

On 20 March 2007 the second plaintiff (“Luvata”), a Delaware corporation with its principal place of business in Buffalo, New York, contracted with defendants MIH Scrap Metals International LLC and/or MIH Cathode Trading LLC (collectively “MIH”) for the purchase of 1,500 mts of copper cathodes. The cathodes were to be shipped from Tanzania to Buffalo. On 21 July 2007 one or other of the defendant Intertek Group companies (collectively “Intertek”) transmitted to Luvata a survey report confirming an inspection of the shipment and providing details of the inspection. Relying on that survey report and various documents from MIH, Luvata transmitted to MIH a payment for the shipment that exceeded US$3.7 million.