Firm sues over €1m in unused de-icing salt
A COMPANY which says it undertook to import nearly ¤1m worth of de-icing salt last year as part of an agreement with another firm says it has been left holding more than 1,700 tonnes of the material.
Willows Ingredients Ltd, Broomhall Business Park, Rathnew, Wicklow, is suing Galtee Fuels Ltd, Askeaton, Co Limerick, for breach of a July 2011 contract in relation to 5,000 metric tonnes of the salt which Galtee allegedly agreed to take delivery of.
Around 1,600 tonnes was delivered to Galtee but was not paid for, while another 1,712 tonnes remains warehoused, Willows claims.
Willows had entered into an agreement with a Turkish company for the purchase and delivery of the salt with the knowledge of Galtee, it is claimed.
Yesterday, Galtee applied to have the dispute over the matter entered into the High Court's big business division, the Commercial Court.
The court heard the value of the salt was €895,000, but was increasing every day because Galtee, after it took delivery of part of the consignment, refused to accept any more with the result that costs, including storage of €4,428 per week, are accruing.
Mr Justice Peter Kelly said he was satisfied the matter met the €1m threshold for Commercial Court cases and he made an order transferring it to the court. He also commented it appeared a huge quantity of the salt had been purchased "in anticipation of a terrible winter."