PST Energy 7 Shipping LLC Product Shipping & Trading S.A. v O.W. Bunker Malta Ltd & Ors

The contract was not a contract for the sale of goods within the meaning of the Sale of Goods Act 1979 because transfer of property was not the essential subject matter; the owners contracted for delivery and immediate right to use the bunkers, not for transfer of title. Failure to transfer title does not relieve owners from obligation to pay for the bunkers consumed.

Parties: Claimant/appellant: PST ENERGY 7 SHIPPING LLC; Claimant/appellant: PRODUCT SHIPPING & TRADING S.A.; Defendant/respondent: O.W. BUNKER MALTA LTD; Defendant/respondent: ING BANK N.V.
Jurisdiction: England and Wales
Judgment Date: 22 October 2015
Procedural Posture: Appeal / Court of Appeal Judgment
Outcome: Appeal dismissed
Legal Topics: Sale of Goods, Retention of Title, Contract Interpretation, Obligation to Pay, Implied Terms

Commercial Law Sale of Goods Retention of Title Contract Interpretation Obligation to Pay Implied Terms

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Parties

PST ENERGY 7 SHIPPING LLC

Claimant/appellant

PRODUCT SHIPPING & TRADING S.A.

Claimant/appellant

O.W. BUNKER MALTA LTD

Defendant/respondent

ING BANK N.V.

Defendant/respondent

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

1 Whether the contract between owners and OWBM was a contract for the sale of goods under the Sale of Goods Act 1979
2 Whether OWBM could recover the price under section 49(1) of the Sale of Goods Act 1979
3 Whether failure to transfer title in the bunkers releases owners from obligation to pay

Ratio Decidendi

Court Disposition

Appeal dismissed

Orders

Failure to transfer title in the bunkers does not release owners from obligation to pay for them
Parties invited to make submissions on appropriate effectuation of decision