Pakistani company to pay damages to US importer

Court says exporter ‘cheated’ on business deal.

KARACHI: In a landmark decision, a Special Commercial Court (SCC) in Pakistan has ordered a Pakistani company to pay damages worth $61,000 to a foreign buyer for shipping the latter defected textile goods.

The Special Commercial Court for Sindh and Balochistan had received a complaint of fraud and breach of contract by D Michael Painter, owner of Messrs Quivera LLC, California, USA – a sourcing agent for a sportswear brand. The complaint had been forwarded through the Trade Development Authority of Pakistan (TDAP).

The SCC was headed by its Chairman, Sathi Ishaque, who delivered the verdict after numerous deliberations.

The case involved a foreign buyer, who had ordered garments worth $50,000 from a Karachi-based textile group in 2008, but the latter shipped defective goods to the importer, leading to the dispute.

The court declared the Pakistani company’s actions tantamount to cheating, and has ordered it to pay damages to the foreign company.

The TDAP had filed the case in the commercial court in 2009-2010. This incident marks the first time a case has been taken up vigorously by regulators, following a government decision to establish commercial courts in order to decide trade disputes involving foreign buyers and sellers.

It is hoped that the decision will leave a positive impression on foreigners with business interests in Pakistan, and raise the country’s credibility in business circles in the US and Europe, where Pakistan has recently been eying greater market access.

Published in The Express Tribune, August 10^th, 2012.