Total Transport Corporation v Arcadia Petroleum Ltd [1997] EWCA Civ 2754 (18th November, 1997)

Total Transport Corporation v Arcadia Petroleum Ltd [1997] EWCA Civ 2754 (18th November, 1997)

Clause 36 of the charterparty does not entitle Charterers to recover losses that were not within the reasonable contemplation of the parties at the time of contract; the clause does not provide an indemnity for unforeseeable losses but is subject to the ordinary rules of remoteness applicable to damages for breach of contract.

Citation
[1997] EWCA Civ 2754
Parties
Appellant/charterer: Arcadia Petroleum Ltd; Respondent/owner: Total Transport Corporation
Jurisdiction
England and Wales
Procedural Posture
Appeal / Judgment After Appeal From High Court Decision Setting Aside Arbitration Award
Outcome
Appeal dismissed
Legal Topics
Charterparty Interpretation, Contractual Indemnity, Remoteness of Damages, Causation in Contract, Voyage Instructions
Commercial Law Shipping Law Contract Law Charterparty Interpretation Contractual Indemnity Remoteness of Damages Causation in Contract Voyage Instructions

Case Brief

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Parties

Arcadia Petroleum Ltd

Appellant/charterer

Total Transport Corporation

Respondent/owner

Procedural Posture

Appeal / Judgment After Appeal From High Court Decision Setting Aside Arbitration Award

Legal Issues

  1. 1 Whether clause 36 of the charterparty provides an indemnity for all losses caused by failure to comply with voyage instructions, irrespective of foreseeability
  2. 2 Whether the loss suffered by the Charterers was too remote to be recoverable under clause 36
  3. 3 Whether causation was established between the Owners' breach and the Charterers' loss

Ratio Decidendi

Clause 36 of the charterparty does not entitle Charterers to recover losses that were not within the reasonable contemplation of the parties at the time of contract; the clause does not provide an indemnity for unforeseeable losses but is subject to the ordinary rules of remoteness applicable to damages for breach of contract.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Leave to appeal refused