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AIC and ITS both claim victory in cargo case.

Europe Intelligence Wire

| December 01, 2006 | COPYRIGHT 2006 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Lloyds List)

Byline: Judge overturns deceit charge but court also backs original ruling, writes Roger Pearson

BOTH sides were claiming victory in the long-running battle between AIC and ITS Testing Services (UK) after judgment was handed down by the Appeal Court in London resulting from an incident more than 10 years ago when ITS used the wrong test on a cargo of gasoline.

The court overturned a High Court ruling that ITS had been guilty of deceit over its handling of subsequent test results that showed the cargo failed to meet the standards specified in the contract.

Lord Justice Rix said there had been 'more muddle and fallibility than fraud' in ITS' actions.

The court did, however, by a two-to-one majority, back the High Court judge's ruling that ITS had deliberately concealed the test results until 2004.

The case will now be returned to the High Court, where a judge will have to rule on how it should be disposed of in the light of the appeal findings.

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