Transfield Shipping Inc of Panama v Mercator Shipping Inc of Monrovia (The "Achilleas")

Transfield Shipping Inc of Panama v Mercator Shipping Inc of Monrovia (The "Achilleas")

Damages for late redelivery of a time-chartered vessel are not limited to the overrun period measure (difference between charter and market rates during the period of late redelivery). Where the loss of a subsequent fixture is a type of loss that is not unlikely and falls within the contemplation of both parties, it is not too remote and is recoverable under the first limb of Hadley v. Baxendale. The owners' loss of profits from the lost fixture was caused by the charterers' breach and is recoverable.

Parties
Appellant/charterers: Transfield Shipping Inc of Panama; Respondent/owners: Mercator Shipping Inc of Monrovia
Jurisdiction
England and Wales
Judgment Date
06 September 2007
Procedural Posture
Civil Appeal / Appeal From Commercial Court (queen's Bench Division) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Damages for Late Redelivery, Remoteness of Damages, Time Charterparties, Loss of Fixture, Hadley V. Baxendale Application
Contract Law Maritime Law Damages for Late Redelivery Remoteness of Damages Time Charterparties Loss of Fixture Hadley V. Baxendale Application

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 17 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Transfield Shipping Inc of Panama

Appellant/charterers

Mercator Shipping Inc of Monrovia

Respondent/owners

Procedural Posture

Civil Appeal / Appeal From Commercial Court (queen's Bench Division) to Court of Appeal

Legal Issues

  1. 1 Are damages for late redelivery of a time-chartered vessel limited to the difference between the charter rate and market rate during the overrun period, or can the owner claim for loss of a subsequent fixture?
  2. 2 Does the loss of a subsequent fixture fall within the first limb of Hadley v. Baxendale or is it too remote?

Ratio Decidendi

Damages for late redelivery of a time-chartered vessel are not limited to the overrun period measure (difference between charter and market rates during the period of late redelivery). Where the loss of a subsequent fixture is a type of loss that is not unlikely and falls within the contemplation of both parties, it is not too remote and is recoverable under the first limb of Hadley v. Baxendale. The owners' loss of profits from the lost fixture was caused by the charterers' breach and is recoverable.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the award of damages in the sum of $1,364,584.37 to the owners is upheld.