PST Energy 7 Shipping LLC & Anor v OW Bunker Malta Ltd & Anor (Res Cogitans)

PST Energy 7 Shipping LLC & Anor v OW Bunker Malta Ltd & Anor (Res Cogitans)

The bunker supply contract was not a contract of sale to which the Sale of Goods Act 1979 applies because the parties contemplated that the bunkers would be consumed before payment and property would not pass; the contract was for the supply and lawful use of bunkers, not for the transfer of title. ING's claim for payment is a straightforward claim in debt, not subject to requirements as to passing of property.

Parties
Claimant: PST Energy 7 Shipping LLC; Claimant: Product Shipping and Trading S. A.; Defendant: O. W. Bunker Malta Limited; Defendant: ING Bank N. V.
Jurisdiction
England and Wales
Judgment Date
14 July 2015
Procedural Posture
Appeal From Arbitration Award / Judgment on Section 69 Appeal and Cross Appeal
Outcome
Appeal dismissed; cross appeal does not arise.
Legal Topics
Retention of Title, Sale of Goods Act 1979, Bunker Supply Contracts, Passing of Property, Implied Terms, Debt Recovery
Commercial Law Contract Law Maritime Law Retention of Title Sale of Goods Act 1979 Bunker Supply Contracts Passing of Property Implied Terms +1 more

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Parties

PST Energy 7 Shipping LLC

Claimant

Product Shipping and Trading S. A.

Claimant

O. W. Bunker Malta Limited

Defendant

ING Bank N. V.

Defendant

Procedural Posture

Appeal From Arbitration Award / Judgment on Section 69 Appeal and Cross Appeal

Legal Issues

  1. 1 Whether the bunker supply contract is a contract of sale to which the Sale of Goods Act 1979 applies
  2. 2 Whether ING can recover payment as a debt or must satisfy section 49 of the Sale of Goods Act
  3. 3 Whether terms equivalent to section 12 of the Sale of Goods Act should be implied

Ratio Decidendi

The bunker supply contract was not a contract of sale to which the Sale of Goods Act 1979 applies because the parties contemplated that the bunkers would be consumed before payment and property would not pass; the contract was for the supply and lawful use of bunkers, not for the transfer of title. ING's claim for payment is a straightforward claim in debt, not subject to requirements as to passing of property.

Court Disposition

Appeal dismissed; cross appeal does not arise.

Orders

  • The Owners' section 69 appeal is dismissed.
  • ING's cross appeal does not arise.