Lila Lisbon: Supreme Court to have the last word

The dispute, which relates to a failed ship sale and purchase, concerns whether a buyer is entitled to loss of bargain damages when terminating under clause 14 of the Norwegian Saleform 2012 by reason of the seller’s default.

In 2024, on a partial appeal of an arbitration award under s.69 of the Arbitration Act 1996, Mrs Justice Dias in the High Court found that a buyer is not entitled to loss of bargain damages when exercising a contractual right to terminate, absent them accepting a repudiation of the contract by seller. See our article on that decision here: LILA LISBON – no loss of bargain without repudiation 

In 2025, the Court of Appeal overturned the High Court’s decision, confirming that a seller may be liable for loss of bargain damages when failing to deliver a vessel by the cancelling date where the failure was due to the seller’s proven negligence. The original arbitration award was therefore reinstated. See our article on that decision here: Lila Lisbon: Court of Appeal clarifies seller's liability under Norwegian Saleform 2012

The matter now falls to be finally determined by the Supreme Court. Permission to appeal was granted by Lord Reed, Lord Hamblen and Lady Simler. The hearing of the appeal is likely to take place within 2026.

Ed Mills-Webb, Ross Attfield, and James Stephenson of Preston Turnbull act for Orion Shipping and Trading LLC