Xcoal Energy & Resources v Acciaierie D’Italia SpA is a decision on wrongful Rule B attachment against cargo owned by an innocent owner. This commentary focuses on the difficulties faced by the owner in obtaining compensation from the arresting party. First, damages are awarded only when the owner proves that the arresting party acted with malice, bad faith, or gross negligence implying malice. This threshold is difficult to satisfy. Second, it is difficult for the owner to bypass this threshold by framing its claim as a tort different from that of the tort of wrongful arrest.

Meanwhile, the arresting party has its own difficulty of investigating ownership of the property to be arrested. Xcoal also emphasises that once contrary evidence emerges, the arresting party must investigate it diligently, but it is not required to release the property immediately. Xcoal therefore illustrates the tension between protecting innocent owners and allowing good-faith arresting parties time and space to verify ownership.