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03 AUG 2026 MONDAY
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QCR Autumn 2018: Carriage of Goods by Sea Fehn Schiffahrts Gmbh & Co Kg v Romani spa (The "Fehn Heaven") - [2018] EWHC 1606 (Comm) Facts The Owners of the vessel, Fehn (“Owners”) voyaged chartered the vessel to Romani (“Charterers”) for the shipment of 1,300mt of organic sunflower seeds and 1,800mt of organic wheat from Reni (Ukraine) to Rotterdam (Netherlands) under two straight bills of lading. SC Justorganic Srl was the named consignee and the holder of the bills of lading (“the Consignee”). At some point after completion of the loading at Reni, and prior to discharge at Rotterdam, the cargo was fumigated, which meant it could no longer be sold as organic. The Consignee assigned its right under the Bills of lading to the charterers who then on-sold the cargo to two buyers at discounted prices. The Charterers then sought to recover the amount of the negotiated discounts from the Owners. They commenced arbitration for their claim relating to the fumigation (i) under the charterparty; and (ii) as assignees under the bills of lading (to avoid arguments about title to sue). The majority of the Tribunal found that Charterers did have title to sue, and that the assignment letter supported the Charterers’ submissions. The Tribunal concluded that the Owners were liable for damages found to have been caused by the unauthorised fumigation of the cargo whilst it was in their care and custody. The tribunal awarded damages to the Charterers relating to the downgrading of the cargoes from organic to conventional cargoes. Owners appealed under s. 69 of the Arbitration Act 1996 and sought clarification of the evidence relied upon by the Tribunal which led to the implicit finding that the Charterers had title to sue. The grounds of the appeal are that the tribunal erred in law when answering the following question in the affirmative and finding that the Charterer had title to sue: "Can a party (A) assigned rights (the "assignee") claim substantial damages in circumstances wher
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pi_circular UK P&I Club ·2018-12-13

QCR Autumn 2018: Carriage of Goods by Sea

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