Supreme Court’s new take on sale of goods and actions for the price

PST Energy 7 Shipping LLC and Another v OW Bunker Malta Ltd and Another (The “Res Cogitans”) [2016] 1 Lloyd’s Rep 589, [2016] UKSC 23, 11 May 2016

A dispute arose over the non-payment of the price for fuel oil and gasoil (bunkers) supplied by OWBM to the vessel “Res Cogitans”. The contract provided for payment 60 days after delivery and included a retention of title clause under which property was not to pass to the vessel’s owners until the bunkers had been paid for in full, but no payment was ever made for the bunkers. The owners sought to argue that the supply was a sale of goods, and because property did not pass to the owners, there was no entitlement to the price by virtue of s.49(1) of the Sale of Goods Act 1979 (SGA).