FEHN SCHIFFAHRTS GMBH $ CO KG V ROMANI SPA (THE "FEHN HEAVEN")

[2018] EWHC 1606 (Comm), Queen's Bench Division, Commercial Court, Mrs Justice Moulder DBE, 27 June 2018

Charterparty (voyage) - Title to sue - Assignee's claim for damages where assignor had suffered no loss - Arbitration - Appeal on a question of law - Arbitration Act 1996, section 69

The owners of the motor vessel Fehn Heaven appealed on a question of law against the award of the arbitration tribunal. The appeal concerned the question of the charterers' title to sue as assignees of the straight bill of lading in respect of a cargo of organic sunflower seeds and wheat. The cargo had been fumigated on board and could therefore no longer be sold as organic. Charterers sold the cargo at a discount to other buyers and commenced arbitration against shipowners for the loss, having also taken assignment from the originally intended buyer, the named consignee under the straight bill of lading. The arbitration tribunal awarded damages to the charterers based on the downgrading of the cargo. Shipowners appealed, arguing that if charterers were suing as assignees, there was no loss because the assignor had not suffered any loss. Charterers argued that if so, they had title to sue under the voyage charterparty, to which shipowners responded that the tribunal had made no such finding.