Fehn Schiffahrts GmbH & Co KG v Romani SPA

Fehn Schiffahrts GmbH & Co KG v Romani SPA

The tribunal failed to distinguish between the issue of title to sue and whether the assignor suffered loss. If Justorganic suffered no substantial loss, the tribunal incorrectly applied the law by allowing the respondent to recover losses as assignee. The court cannot determine from the award whether the tribunal answered the legal question correctly, so the matter must be remitted to the tribunal.

Parties
Appellant/owners: Fehn Schiffahrts GmbH & Co KG; Respondent/charterers: Romani SPA
Jurisdiction
England and Wales
Judgment Date
27 June 2018
Procedural Posture
Appeal Under Section 69 of the Arbitration Act 1996 / Judgment on Appeal Against Arbitral Award
Outcome
appeal allowed
Legal Topics
Assignment of Rights, Damages, Title to Sue, Bills of Lading, Charterparty, Error of Law
Commercial Law Arbitration Contract Law Assignment of Rights Damages Title to Sue Bills of Lading Charterparty +1 more

Case Brief

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Parties

Fehn Schiffahrts GmbH & Co KG

Appellant/owners

Romani SPA

Respondent/charterers

Procedural Posture

Appeal Under Section 69 of the Arbitration Act 1996 / Judgment on Appeal Against Arbitral Award

Legal Issues

  1. 1 Whether the respondent had title to sue for substantial damages under an assignment when the assignor suffered no loss
  2. 2 Whether the tribunal erred in law by conflating title to sue and entitlement to substantial damages
  3. 3 Whether the respondent could recover damages under the charterparty independent of the assignment

Ratio Decidendi

The tribunal failed to distinguish between the issue of title to sue and whether the assignor suffered loss. If Justorganic suffered no substantial loss, the tribunal incorrectly applied the law by allowing the respondent to recover losses as assignee. The court cannot determine from the award whether the tribunal answered the legal question correctly, so the matter must be remitted to the tribunal.

Court Disposition

appeal allowed

Orders

  • matter remitted to the tribunal for reconsideration