CWB To Pay Damages Totaling $1.6M To Overseas Customers
According to Reuters, the Canadian Wheat Board (CWB), is liable for negligently misrepresenting the quality of their wheat and must pay $1.6 million to its overseas disgruntled customers, a Canadian judge ruled, potentially ending a 26-year-old battle.
Agro Company of Canada (now owned by ConAgra Foods, an accredited CWB exporter), bought some wheat from the CWB, and in 1983 sent two shipments totaling roughly 25,000 tons to Italian grain trader Pagnan as part of an order of 96,000 tons. Pagnan later asked Agro to substitute importer Albionex (Overseas) Ltd, a company incorporated in the Channel Islands, as the initial buyer, to which Agro agreed. Pagnan had presold the wheat and soon received complaints about its quality. Agro refused to take it back and Pagnan ended up disposing of it. Albionex also refused to accept the rest of Agro’s shipment.
One-fifth of Canada’s 1982 spring wheat crop had frost damage, according to the report. The Canadian Grain Commission, which tests wheat quality, told the CWB then that some of the wheat was of millable quality, but after the CWB sent a letter to customers describing the frost-damaged crop, the commission warned the board that the letter’s message “could be misleading.” CWB will appeal the decision.
According to Reuters, the Canadian Wheat Board (CWB), is liable for negligently misrepresenting the quality of their wheat and must pay $1.6 million to its overseas disgruntled customers, a Canadian judge ruled, potentially ending a 26-year-old battle.
Agro Company of Canada (now owned by ConAgra Foods, an accredited CWB exporter), bought some wheat from the CWB, and in 1983 sent two shipments totaling roughly 25,000 tons to Italian grain trader Pagnan as part of an order of 96,000 tons. Pagnan later asked Agro to substitute importer Albionex (Overseas) Ltd, a company incorporated in the Channel Islands, as the initial buyer, to which Agro agreed. Pagnan had presold the wheat and soon received complaints about its quality. Agro refused to take it back and Pagnan ended up disposing of it. Albionex also refused to accept the rest of Agro’s shipment.
One-fifth of Canada’s 1982 spring wheat crop had frost damage, according to the report. The Canadian Grain Commission, which tests wheat quality, told the CWB then that some of the wheat was of millable quality, but after the CWB sent a letter to customers describing the frost-damaged crop, the commission warned the board that the letter’s message “could be misleading.” CWB will appeal the decision.