Leigh & Sillivan Ltd. v. Aliakmon Shipping Co. Ltd. (The Aliakmon) - Court of Appeal (Sir John Donaldson M.R., Oliver and Robert Goff L.JJ.) - 7 December 1984

Whether c. & f. buyer to whom property had not passed can sue carrier in tort

The plaintiffs had agreed to buy a cargo of steel from sellers on c. & f. terms. The cargo was allegedly damaged whilst being carried in the defendants’ vessel Aliakmon . At the relevant time, the property in the cargo had not passed to the plaintiffs and they had no right of possession to the cargo, but they were bound to pay the price and did bear the risk of damage. The plaintiffs held a bill of lading on behalf of the sellers, but there was (as the Court of Appeal decided) no contractual relationship between the plaintiffs and the shipowners. The question was whether the plaintiffs could sue the shipowners in tort. The plaintiffs submitted that they were entitled to do so, citing The Irene’s Success [1981] 2 Lloyd’s Rep. 635 and The Nea Tyhi [1982] 1 Lloyd’s Rep. 606.