Watson Steamship Co v Merryweather and Co: 1913

The vessel owners sought damages when the ship was redelivered 20 days late by the charterers. The special case as pleaded was ‘A claim was made by the owners for damages for dislocation of business and other special damage, but there was no evidence before the umpire that such damages were within the contemplation of the parties at the time the said charterparty was entered into, and he therefore found that such damages were too remote.
The umpire directed and awarded that the charters should pay to the owners andpound;100, being damages for 20 days detention of the Hugin calculated at the difference between the chartered rate and the current rate for the said period’. Was there a breach of contract?
Held: There had been the breach alleged. The court upheld the award. Whatever the ‘dislocation of business’ was, the umpire was not able to find that it was something contemplated by the parties. Damages were awarded on the market versus charterparty rate basis.

Judges:

Atkin J

Citations:

[1913] 18 Com Cas 294

Cited by:

CitedTransfield 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.

Damages

Updated: 10 May 2022; Ref: scu.246740