Italy 19 April 1994 Florence Arbitration proceeding (Leather/textile wear case) [translation available]
[Cite as: http://cisgw3.law.pace.edu/cases/940419i3.html]
Primary source(s) for case presentation: Case text
DATE OF DECISION:
JURISDICTION:
TRIBUNAL:
JUDGE(S):
CASE NUMBER/DOCKET NUMBER: Unavailable
CASE NAME:
CASE HISTORY: Unavailable
SELLER'S COUNTRY: Italy (claimant)
BUYER'S COUNTRY: Japan (defendant)
GOODS INVOLVED: Leather/textile wear
Case law on UNCITRAL texts (CLOUT) abstract no. 92
Reproduced with permission from UNCITRAL
A contract concluded by and Italian seller and a Japanese buyer for the supply of leather and/or textile wear contained a clause under which the contract was to be "governed exclusively by Italian law".
By majority, the arbitral tribunal decided that CISG did not apply to the contract, either because Japan had not yet ratified CISG or because the contract itself had been made subject exclusively to Italian law. In the view of the tribunal, the choice of Italian law by the parties amounted to an implicit exclusion of CISG (Article 6 CISG).
One of the arbitrators, dissenting, held that CISG did apply since the choice of Italian law confirmed that the parties intended to apply CISG pursuant to Article 1(1)(b) CISG and was not a declaration pursuant to Article 6 CISG.
APPLICATION OF CISG: No [cf. dissenting opinion]
APPLICABLE CISG PROVISIONS AND ISSUES
Key CISG provisions at issue: Articles
Classification of issues using UNCITRAL classification code
numbers:
6A1 [Convention yields to contract: exclusion or modification of
Convention by contract (implied)]
CITATIONS TO OTHER ABSTRACTS OF DECISION
English: Unilex database [CLOUT abstract]
French: Revue de Droit des Affaires Internationales (1995) 1010
German: Schweizerische Zeitschrift für Internationales und
Europäisches Recht (SZIER) / Revue suisse de droit international et de droit
européen (1996) 58
Italian: Diritto del Commercio Internazionale (1995) 455-456 No. 77
Polish: Hermanowski/Jastrzebski, Konwencja Narodow Zjednoczonych o umowach
miedzynarodowej sprzedazy towarow (Konwencja wiedenska) - Komentarz (1997) 255-256
CITATIONS TO TEXT OF DECISION
Original language (Italian): Diritto del Commercio Internazionale 1994, 867-873; Unilex database [excerpt] <http://www.unilex.info/case.cfm?pid=1&do=case&id=60&step=FullText>
Translation (English): Text presented below
CITATIONS TO COMMENTS ON DECISION
English: Honnold, Uniform Law for International Sales (1999) 81 [Art. 6 (choice of law)]; Bonell/ Liguori, Uniform Law Review (1996-1) 147 [157 n. 55, n. 56]; Ferrari, International Legal Forum (4/1998) 138-225 [216 n.706 (criticism of implicit exclusion of CISG)]; Ferrari, 15 Journal of Law and Commerce (1995) 86-91; Klotz, International Sales Agreements - Canada (1997) 6 n.10, 15 n.55; Klotz,
International Sales Agreements - International (1998) 5 n.10, 22 n.77; Petrochilos, Arbitration Conflict of Laws Rules and the CISG (1999) n.58; Spanogle/Winship, International Sales Law: A Problem Oriented Coursebook (West 2000) [opting-out/opting-in the CISG 74-76 (this case at 75)]
German: Piltz, Neue Juristische Wochenschrift (NJW) 1996 [2769 n. 19]; Piltz, [1999] Transportrecht, Beilage "Internationales Handelsrecht" (TranspR-IHR) 13 [14 n.12]
Italian: Cappuccio, Diritto del Commercio Internazionale (1994) 867-873; Liguori, Foro italiano (1996-IV) 145 [159-160 n. 76, n. 77]
Spanish: Castellanos, Autonomia de la voluntad y derecho uniforme en la compraventa
internacional, thesis, Carlos III de Madrid (1998) 98-100
Queen Mary Case Translation Programme
Arbitral Award 19 April 1994
Società X v. Società Y
Translation [*] by Alessia Oddone [**]
Translation edited by Angela Maria Romito [***] I. BACKGROUND FACTS
1. Facts
On 1 June 1989, company X, [seller], having its registered office in Florence [Italy] and
company Y, [buyer], having its registered office in Tokyo [Japan] entered into a
contract for the supply of leather and/or textile wear, manufactured by [seller] and
bearing the trademark [HM]; the contract granted [buyer] exclusivity rights for Japan
and required [buyer] to purchase a minimum amount of goods for a period of five years,
from 1 July 1989 to 30 June 1994.
[...]
II. TRIBUNAL'S REASONING
[...]
2. Applicability of Vienna Convention (CISG)
Since counsel for [buyer] in several occasions referred to the principles of the Vienna
Convention of 11 April 1980 on Contracts for the International Sale of Goods [CISG]
(ratified in Italy by Law 11 December 1985 n. 765 and in force since 1 January 1988),
the majority of the Tribunal holds, without ascertaining whether the Convention is
relevant to the merits of the dispute, that the applicability of the Convention must be
excluded. This is because the Convention has not yet been ratified in Japan and also
because clause 39 of the supply contract specifies that the contract is governed
exclusively by Italian law.
[...]
One of the arbitrators, dissenting from the majority of the Tribunal, summarized his
position as follows:
"The Arbitrator does not agree with the decision of the majority of the Tribunal, in particular for the following reasons:
a) because the majority has decided that the Vienna Convention does not apply to the contract between the parties; on the contrary, the Convention is applicable pursuant to Art. 1(1)(b) CISG, since the choice of Italian law as the governing law confirms the applicability of the Convention, rather than excluding it pursuant to article 6 CISG;
b) [...]"
[…]
FOOTNOTES
* All translations should be verified by cross-checking against the original text. For purposes of this translation, company X, Claimant of Italy, is referred to as [seller]; company Y, Respondent of Japan, is referred to as [buyer].
** Alessia Oddone, LL.M. (University of London), Lawyer (Genoa Bar) currently working in London. The second-iteration redaction of this translation was by Dr. John Felemegas of Australia.
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Ad hoc Arbitral Tribunal - Florence
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Commercial Law - Last updated July 2, 2003
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