Matthew McGhee examines the impact of the Judgment of the Court of Appeal (1) PST Energy 7 Shipping LLC; (2) Product Shipping & Trading S.A. v. (1) O.W. Bunker Malta Ltd; (2) ING Bank N.V.  EWCA Civ 1058 (‘Res Cogitans’) on the nature of bunker supply contracts.
Yesterday, the Court of Appeal handed down judgment in this case, which has been anxiously watched by those in the industry following the insolvency of OW Bunker in November 2014. The case centres on the question of whether the contract between a shipowner and the OW Bunker subsidiary company for the provision of bunkers is or is not a contract for the sale of goods.
A unanimous Court of Appeal, the lead judgment being given by Moore-Bick LJ with a brief postscript from Longmore LJ, upheld the previous decision of Males J ( EWHC 2022 (Comm)). Males J had himself upheld the decision of the arbitral tribunal in the first instance. The decision’s impact will be widely felt by the many parties who have been affected by the collapse of OW.
Please find the briefing available here to download.