The ship under charter was returned late. The arbitrators had awarded the market rate of hire from the date when the vessel would have been delivered if she had not undertaken her last (illegitimate) voyage rather than from the last date when she could have been delivered without a breach of charterparty.
Held: The courtoverturned the award: ‘In my judgement the arbitrators’ approach conflicts with the principle governing the calculation of damages which was enunciated in The Dione . . A study of the judgments of the majority reveals that this case is authority for the proposition that in circumstances where the owners undertook the illegitimate last voyage without waiving their rights to claim damages, the charterers’ obligation is to pay the charter rate until the last permissible date for redelivery, and thereafter pay the market rate until the actual redelivery . . I am of course bound by this decision. But . . I would have come to the same conclusion in the absence of authority.’
Judges:
Steyn J
Citations:
[1991] I LLR 77
Cited by:
Cited – Transfield Shipping Inc of Panama v Mercator Shipping Inc of Monrovia ComC 1-Dec-2006
The owners made substantial losses after the charterers breached the contract by failing to redliver the ship on time as agreed.
Held: On the facts found the Owners’ primary claim is not too remote. To the knowledge of the Charterers, it was . .
Lists of cited by and citing cases may be incomplete.
Contract, Transport
Updated: 14 May 2022; Ref: scu.246799
