The Noel Bay was let on a charterparty to carry oil between ports in Europe, with demurrage provisions. The owners treated the charterer’s failure to nominate a port, as a repudiation. The owners found alternative employment for the ship and sought the difference in return as damages and demurrage for 72 hours which they would have earned together with the cost of getting the ship to the new port. They appealed refusal of the award of these additional sums.
Held: The appeal failed. Though they would have earned the demurrage had the contract continued, since it had not been, the proper basis for delay, giving credit for earnings in that period. The cost of getting the ship to the new port (the approach voyage) was part of the cost of the new contract for which the owner had to give credit. Staughton LJ accepted counsel’s submission that the value of the contract which the owners lost ‘must be assessed as at . . the date when repudiation was accepted’ and ‘It is established law that, at any rate if the option has not already been exercised at the date of the breach, the charterer must be assumed to have exercised that option in a way most favourable to himself.’
Staughton LJ
[1989] 1 Lloyd’s Rep 361
England and Wales
Citing:
Approved (Megaw LJ) – Maredelanto Compania Naviera SA v BergbauHandel GmbH (The Mihalis Angelos) CA 1-Jul-1970
mihalisCA1970
The parties had agreed a charterparty. The ship was to sail to Haiphong to load a cargo for delivery in Europe. The charterer had a right to cancel if the vessel was not ready on a certain date, but a few days earlier they repudiated the charter. . .
Cited by:
Cited – Golden Strait Corporation v Nippon Yusen Kubishka Kaisha (‘The Golden Victory’) HL 28-Mar-2007
The claimant sought damages for repudiation of a charterparty. The charterpary had been intended to continue until 2005. The charterer repudiated the contract and that repudiation was accepted, but before the arbitrator could set his award, the Iraq . .
Lists of cited by and citing cases may be incomplete.
Updated: 09 August 2021; Ref: scu.252491