The Kate was totally lost in a collision with the defendants’ ship, whilst on the ballast leg of a charterparty. The issue was whether in a case of total loss as opposed to partial loss of a ship without a cargo, the plaintiffs could recover only the market value of the ship at the time of the loss (as the defendants contended) or the profit lost under the charterparty as well (as the plaintiffs contended).
Sir Francis Jeune P laid it down that the general principle which governs the assessment of damage is ‘restitutio in integrum qualified by the condition that the damage sought to be recovered must not be too remote.’ and also said: ‘Sir Robert Phillimore states that the value should be taken as at the end of the voyage, and therefore lets in freight or interest as an additional compensation . . The present case, which is that of a vessel without cargo, but under charter, being totally lost, is not exactly that contemplated by Sir Robert Phillimore; but it appears to me to follow from his judgment that the value of the vessel may in such case be taken as at the end of her voyage, and something allowed in respect of the period between the time of collision and the end of the voyage . . the profits under the charterparty should take the place of interest, as more accurately representing the loss to the owner, and may fairly be considered to be the equivalent of freight when a cargo is on board. Indeed I can see no distinction in principle between the case of freight when a cargo is on board and . . a charterparty under which cargo is to be taken.’
Citations:
[1899] P 165
Jurisdiction:
England and Wales
Citing:
Cited – The ‘Columbus’ 9-Mar-1849
Where a vessel is sunk in a collision, and compensation is awarded by the Court of Admiralty to the full value of the vessel as for a total loss, the plaintiff will not be able to recover anything in the nature of a demurrage for loss of the . .
Cited by:
Cited – Mitsui Sumitomo Insurance Co (Europe) Ltd and Another v The Mayor’s Office for Policing and Crime ComC 12-Sep-2013
In the lead case, Sony’s warehouse at Enfield had been severely damaged in what were said to be riots in August 2011. The court considered preliminary issues as to whether the events constituted a riot within the 1886 Act, and the extent of damages . .
Cited – Mitsui Sumitomo Insurance Co (Europe) Ltd and Others v Mayor’s Office for Policing and Crime CA 20-May-2014
The appellant had suffered damage in a riot, and, under the 1886 Act, the respondent was liable to pay compensation.
Held: The MOPC was liable to pay compensation by way of indemnity. Analysis of section 2(1) suggested compensation for loss . .
Cited – The Mayor’s Office for Policing and Crime v Mitsui Sumitomo Insurance Co (Europe) Ltd and Others SC 20-Apr-2016
The Court considered the quantification of damages to be awarded to a business suffering under riots under the 1886 Act, and in particular whether such recoverable losses included compensation for consequential losses, including loss of profits and . .
Lists of cited by and citing cases may be incomplete.
Transport, Damages
Updated: 20 May 2022; Ref: scu.608294