May 30, 2016

English Supreme Court rules in favour of OW Bunkers


On 11 May 2016 the English Supreme Court delivered its unanimous judgment on the RES COGITANS case in favour of bankrupt marine fuel supplier OW Bunker Malta (“OW Bunkers”) in a dispute over payment liabilities rejecting the further appeal of the ship owners. The outcome was generally expected, as the ship owners had been unsuccessful before the arbitrators, High Court and Court of Appeal.

However, the decision represents an unwelcome conclusion for ship owners and charterers who now ultimately face the prospect of having to pay twice for the same supply: once to their immediate supplier now insolvent, and again to the ultimate physical supplier of the bunkers who may claim against the ship owner in tort or claim rights under a reservation of title or maritime lien.

The Supreme Court acknowledged that the proceedings were being treated as a test case, which is expected to influence many similar cases arising from the collapse of OW Bunkers.

1 comment:

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