A charter-party contained a clause, ‘penalty for non-performance of this agreement, estimated amount of freight on quantity not shipped in accordance herewith.’ The shipowner failed to send a ship for one of the shipments stipulated for. Held (aff judgment of the First Division) that the shipowner was not deprived of his right to have an award of damages commensurate with the loss sustained.
Manufacturers of wood pulp in Sweden contracted by charter-party with shipowners for the carriage of a quantity of wood pulp ‘in August-September’ (owners’ option), the vessel being entitled after loading to call at other ports, to Cardiff. They also sold the same quantity of wood pulp to vendees, manufacturers at Cardiff, ‘mode and place of delivery,’ ‘c.i.f. Penarth Dock, Cardiff,’ ‘time of delivery’ ‘August-September.’ The shipowners having failed to supply a ship, the vendees purchased at home the quantity of wood pulp and received from the charterers, as damages for breach of the contract of sale, the difference between the cost of so doing and the contract price. The charterers then sought to recover from the shipowners, who admitted the breach of their contract, but defended on the ground that the charterers were suing for special damages to which they were not entitled, inasmuch as the two contracts did not coincide, and had not in their summons sued for general damages.
Held (rev. the judgment of the First Division) that the charterers were entitled to recover, inasmuch as the ‘proper measure of the damages was the cost of replacing the goods at their place of destination at the time when they ought to have arrived, less the value of the goods in Sweden and the amount of the freight and insurance,’ and the purchases by the vendees was proof of such cost.
Opinion per curiam that there is no difference between the law of Scotland and the law of England as to the measure of damages in such circumstances. Dunlop v. Higgins (1848), 1 H.L.C. 381, adversely commented on.
Citations:
[1905] UKHL 844, 42 SLR 844
Links:
Jurisdiction:
Scotland
Contract, Damages
Updated: 26 April 2022; Ref: scu.621189
