Golden Strait Corporation v Nippon Yusen Kubishika Kaisha "The Golden Victory" [2005] EWHC 161 (Comm) (15 February 2005)

Golden Strait Corporation v Nippon Yusen Kubishika Kaisha "The Golden Victory" [2005] EWHC 161 (Comm) (15 February 2005)

Damages for repudiation of a long-term charterparty are to be assessed in accordance with the compensatory principle, taking into account subsequent events (such as the outbreak of war triggering a war clause) that would have lawfully terminated the contract, even if those events were not predestined at the date of breach. The existence of an available market does not create a rigid rule requiring damages to be assessed at the date of breach for the full remaining period regardless of subsequent events.

Citation
[2005] EWHC 161 (Comm)
Parties
Claimant/applicant: Golden Strait Corporation; Defendant/respondent: Nippon Yusen Kubishika Kaisha
Jurisdiction
England and Wales
Judgment Date
15 February 2005
Procedural Posture
Appeal From Arbitration Award (commercial Court) / Judgment on Appeal Under Section 69 Arbitration Act 1996
Outcome
Appeal dismissed
Legal Topics
Assessment of Damages, Repudiation of Contract, Charterparty, Mitigation of Loss, War Clause, Available Market, Causation of Loss
Commercial Law Contract Law Maritime Law Assessment of Damages Repudiation of Contract Charterparty Mitigation of Loss War Clause +2 more

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Parties

Golden Strait Corporation

Claimant/applicant

Nippon Yusen Kubishika Kaisha

Defendant/respondent

Procedural Posture

Appeal From Arbitration Award (commercial Court) / Judgment on Appeal Under Section 69 Arbitration Act 1996

Legal Issues

  1. 1 Whether damages for repudiation of a long-term charterparty should be assessed at the date of breach for the full remaining period or limited by subsequent events (war clause) that would have entitled the charterer to terminate early.
  2. 2 Whether the existence of an available market at the date of breach mandates assessment of damages at that date regardless of subsequent events.

Ratio Decidendi

Damages for repudiation of a long-term charterparty are to be assessed in accordance with the compensatory principle, taking into account subsequent events (such as the outbreak of war triggering a war clause) that would have lawfully terminated the contract, even if those events were not predestined at the date of breach. The existence of an available market does not create a rigid rule requiring damages to be assessed at the date of breach for the full remaining period regardless of subsequent events.

Court Disposition

Appeal dismissed

Orders

  • The appeal by Golden Strait Corporation is dismissed.