Norwegian Supreme Court interprets seller's right of stoppage under Art. 71(2), (3) CISG

In Genfoot Inc. v. SCHENKERocean Ltd., the Norwegian Supreme Court has addressed the prerequisites and effects of the seller's right of stoppage under Art. 71(2) CISG.

In the dispute between a Canadian seller of shoes (Genfoot Inc.) and a Hong Kong-based carrier (SCHENKERocean Ltd.), the Supreme Court inter alia held that the notice of suspension required by Art. 71(3) CISG does not constitute a prerequisite for the seller exercising his right of stoppage under Art. 71(2) CISG.

The Supreme Court furthermore stressed that Art. 71(2) CISG is only concerned with the relationship between the seller and the buyer (in the present case, the Norwegian distributor Portland Norge AS), without affecting the separate question whether the carrier is under an obligation to comply with the seller's stoppage order. (The second sentence of Art. 71(2) CISG specifically says so.)

The Norwegian Supreme Court's decision is its first published decision interpreting the 1980 Sales Convention, and one of (yet) very few court decisions from Norway to do so.