Scope of the Sale of Goods Act 1979: The Res Cogitans

PST Energy 7 Shipping LLC and Another v OW Bunker Malta Ltd and Another (The “Res Cogitans”) [2015] EWCA Civ 1058 is only one of the many cases flowing from the restructuring proceedings of OW Bunkers in Denmark, and perhaps the one destined for greatest influence upon English law. The Court of Appeal has dismissed the appeal of the shipowner, holding that OW Bunker (OWBM) was entitled to payment for the bunkers that had been supplied, notwithstanding that OWBM was never in a position to transfer title to the bunkers to the owners.

The Court of Appeal’s dismissal of the appeal means that three tiers, including the LMAA arbitral tribunal and Males J sitting in the High Court, have now decided in favour of the bunker supplier against the shipowners.