Space Shipping Ltd v ST Shipping and Transport PTE Ltd [2021] EWHC 2288 (Comm) (13 August 2021)

Space Shipping Ltd v ST Shipping and Transport PTE Ltd [2021] EWHC 2288 (Comm) (13 August 2021)

The arbitrator was entitled to deduct the saved drydocking costs from Owners' claims because the saving was caused by Charterers' breach, there was no finding of equal liability to Head Owners, res judicata did not apply, and the deduction was permissible from both damages and indemnity claims.

Source-derived case information.

Citation
[2021] EWHC 2288 (Comm)
Parties
Claimant/owners in the Arbitration: Space Shipping Ltd; Defendant/charterers in the Arbitration: ST Shipping and Transport Pte Ltd
Jurisdiction
England and Wales
Judgment Date
13 August 2021
Procedural Posture
Appeal Under Arbitration Act 1996, S.69 / Judgment on Appeal From Arbitral Award
Outcome
Appeal dismissed
Legal Topics
Deduction of Savings in Damages, Causation in Contract Breach, Res Judicata, Indemnity Clauses, Assessment of Damages
Arbitration Maritime Law Contract Law Deduction of Savings in Damages Causation in Contract Breach Res Judicata Indemnity Clauses Assessment of Damages

Source-derived case record

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 4 Authorities cited 10 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Space Shipping Ltd

Claimant/owners in the Arbitration

ST Shipping and Transport Pte Ltd

Defendant/charterers in the Arbitration

Procedural Posture

Appeal Under Arbitration Act 1996, S.69 / Judgment on Appeal From Arbitral Award

Legal Issues

  1. 1 Whether saved drydocking costs should be deducted from Owners' claim for hire and operating expenses caused by Charterers' breach
  2. 2 Whether there was a sufficient causal nexus between the breach and the saving
  3. 3 Whether Charterers were estopped by res judicata from alleging such a saving

Ratio Decidendi

The arbitrator was entitled to deduct the saved drydocking costs from Owners' claims because the saving was caused by Charterers' breach, there was no finding of equal liability to Head Owners, res judicata did not apply, and the deduction was permissible from both damages and indemnity claims.

Court Disposition

Appeal dismissed

Orders

  • Deduction of US$1,400,000 for saved drydocking costs from Owners' claims confirmed
  • No further sums awarded to Owners in respect of drydocking costs