Appeals Court reduces award to Freight Management Ltd
THE COURT of Appeal has upheld a Supreme Court ruling that Caribbean Cement Company Limited was liable to pay damages to Freight Management Limited for breach of contract.
However, the court reduced the US$330,000 that was awarded to freight management to US$165,000.
The court, in allowing the appeal in part, said the judge erred in estimating the cost that the company would have incurred in earning income.
However, it ruled that the judge correctly found that the conduct of the parties, after Caribbean Cement indicated to freight management that it was the successful bidder, suggested that they consider themselves as parties to a contract.
Caribbean Cement had appealed the ruling of Justice Almarie Sinclair-Haynes arguing that she erred when she found that a contract had been concluded between the parties.
The dispute dates back to August 2002 when Caribbean Cement issued an invitation for tenders for the transportation of cement by sea.
Freight Management was advised verbally that of six tenders it was selected as the preferred supplier.
Caribbean Cement had engaged the company to ship cement by sea following a dispute with its truckers.
However, Caribbean Cement cancelled the arrangement after the dispute with the truckers was resolved.