Federal Court Grants BLI’s Motion for Summary Judgment in CISG Case

Federal Court Grants BLI’s Motion for Summary Judgment in CISG Case

February 2, 2017
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On behalf of a leading global export credit insurer, Bluestone Law International (“BLI”) obtained summary judgment when a federal district court judge ruled in its favor, determining under the United Nations Convention on Contracts for the International Sales of Goods (the “CISG”), that BLI’s client was entitled to full compensation, plus interest, for the purchase price of multiple shipments of auto parts from Asia despite the buyer’s complaints of receiving non-conforming goods.

Judge Cathy Bissoon of the U.S. District Court for the Western District of Pennsylvania in Pittsburgh rejected the defendant/buyer’s “technicality-driven arguments” and granted BLI and its client the full relief requested. The court agreed with BLI’s assertion that the buyer’s allegations of non-conforming goods did not insulate them from liability as the buyer failed to meet its burden to prove that the goods were defective and failed to provide sufficient notice.

Article 39 of the CISG states that “[a] buyer loses the right to rely on a lack of conformity of the goods if he does not give notice to the seller specifying the nature of the lack of conformity within a reasonable time after he has discovered it or ought to have discovered it.” CISG, art. 39. The wording of the CISG reveals an intent that buyers examine goods promptly and give notice of any defects to sellers promptly. Shuttle Packaging Sys., LLC v. Tsonakis, 01-CV-691, 2001 WL 34046276, at *9 (W.D. Mich. Dec. 17, 2001). Here, BLI argued successfully that the buyer failed to provide appropriate notice, to the correct party, as required under the law.

In granting BLI’s motion, Judge Bissoon also denied the defendant/buyer’s cross-motion for summary judgment.

BLI, representing global clients in disputes for decades remains a leader in litigating international commercial disputes. BLI was led by attorneys Kyle Choi, Zack Bluestone and Gabe Bluestone in the litigation.