MSC Mediterranean Shipping Company SA v Cottonex Anstalt [2016] EWCA Civ 789 (27 July 2016)

MSC Mediterranean Shipping Company SA v Cottonex Anstalt [2016] EWCA Civ 789 (27 July 2016)

Carrier entitled to demurrage only up to 1 February 2012; after commercial purpose was frustrated by shipper's breach, carrier could not claim continuing demurrage and was entitled to damages for loss of containers based on their replacement value.

Citation
[2016] EWCA Civ 789
Parties
Claimant/appellant: MSC Mediterranean Shipping Company S. A.; Defendant/respondent: Cottonex Anstalt
Jurisdiction
England and Wales
Judgment Date
27 July 2016
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal allowed in part; judgment varied.
Legal Topics
Demurrage, Repudiatory Breach, Liquidated Damages, Frustration of Contract, Penalty Clauses, Mitigation of Loss
Commercial Law Contract Law Shipping Law Demurrage Repudiatory Breach Liquidated Damages Frustration of Contract Penalty Clauses +1 more

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 5 Authorities cited 19 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

MSC Mediterranean Shipping Company S. A.

Claimant/appellant

Cottonex Anstalt

Defendant/respondent

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether demurrage became payable under the bills of lading
  2. 2 Whether the shipper's inability to redeliver containers amounted to repudiation/frustration
  3. 3 Whether the carrier could affirm the contract and claim continuing demurrage

Ratio Decidendi

Carrier entitled to demurrage only up to 1 February 2012; after commercial purpose was frustrated by shipper's breach, carrier could not claim continuing demurrage and was entitled to damages for loss of containers based on their replacement value.

Court Disposition

Appeal allowed in part; judgment varied.

Orders

  • Carrier entitled to demurrage up to 1 February 2012.
  • Carrier entitled to damages for loss of containers at replacement value as of 2 February 2012.