The B.C. Supreme Court in Canada has decided in favour of Domtar in a dispute between the papermaker and caustic soda supplier Univar Canada over the application of force majeure in a caustic soda contract, reports Pulp&Paper Canada.
During 2008 the global price of caustic soda increased dramatically, and Univar then applied force majeure.
In a 23-page written decision released, B.C. Supreme Court Justice Barbara Fisher ruled that overcharged Domtar over a six-month period in 2008.
"Accordingly, I have concluded that the increased price of caustic soda in 2008 did not constitute an event of force majeure within the terms of clause 15A of the contract. Univar was not entitled to be excused from performance and it remained obligated to supply caustic soda to Domtar at the contract price until the contract expired on December 31, 2008."
During a six-month period, Domtar paid the requested price, under protest, because the supply of caustic soda was vital to the operation of the mill.
Domtar has since chosen to change suppliers of caustic soda.
