Manufacture at your risk, say Dr Anton van Dellen & Sara Wyeth
When a manufacturer supplies to a wholesaler, to what extent should the manufacturer be held responsible for events involving a wholesaler and an end-retailer? This question was considered by the Court of Appeal in the recent case of Confectia v Miss Mania [2014] EWCA Civ 1484.
Who bears the risk?
Confectia is a manufacturer of clothing based in Romania. It agreed to supply clothing to Miss Mania, a wholesaler based in the UK. Miss Mania proceeded to supply garments to a number of retailers, one of whom, Perera, refused to pay for the goods on the grounds of quality after delivery from Miss Mania. However, Miss Mania either took no steps or inadequate and insufficient steps to recover the goods from Perera and Perera was struck off almost a year later.
The issue before the court was whether the insolvency of a retailer was reasonably contemplatable as a serious possibility at the time of contracting within the rule in Hadley v Baxendale (1854) 9 Exch 341, [1843-60] All ER
