Golden Strait Corporation v Nippon Yusen Kubishika Kaisha "The Golden Victory"

Golden Strait Corporation v Nippon Yusen Kubishika Kaisha "The Golden Victory"

Damages for repudiation of a long-term charterparty with an available market are not to be assessed rigidly at the date of breach for the full remaining period if subsequent events, such as the outbreak of war triggering a war clause, would have entitled the charterer to terminate. The compensatory principle requires that damages reflect the actual loss suffered, taking into account such subsequent events, and not a hypothetical loss extending beyond the period the contract would have subsisted.

Parties
Claimant/applicant: Golden Strait Corporation; Defendant/respondent: Nippon Yusen Kubishika Kaisha
Jurisdiction
England and Wales
Judgment Date
15 February 2005
Procedural Posture
Arbitration Appeal / Judgment on Appeal Under Section 69 of the Arbitration Act 1996
Outcome
Appeal dismissed
Legal Topics
Assessment of Damages, Repudiation of Contract, Charterparty, Mitigation of Loss, Available Market, War Clause
Commercial Law Arbitration Contract Law Assessment of Damages Repudiation of Contract Charterparty Mitigation of Loss Available Market +1 more

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Parties

Golden Strait Corporation

Claimant/applicant

Nippon Yusen Kubishika Kaisha

Defendant/respondent

Procedural Posture

Arbitration Appeal / Judgment on Appeal Under Section 69 of the Arbitration Act 1996

Legal Issues

  1. 1 Whether damages for repudiation of a long-term charterparty with an available market should be assessed at the date of breach for the full remaining period or limited by subsequent events such as the exercise of a war clause.

Ratio Decidendi

Damages for repudiation of a long-term charterparty with an available market are not to be assessed rigidly at the date of breach for the full remaining period if subsequent events, such as the outbreak of war triggering a war clause, would have entitled the charterer to terminate. The compensatory principle requires that damages reflect the actual loss suffered, taking into account such subsequent events, and not a hypothetical loss extending beyond the period the contract would have subsisted.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed. The arbitrator's award stands. The court will hear the parties on any consequential matters at the formal handing down of the judgment.