Ali Reza-Delta Transport Co Ltd. v United Arab Shipping Co SAG
The proper measure of damages is the market value of the equipment in Saudi Arabia at the time of destruction, which must reflect the costs of transporting, importing, and adapting the equipment for use there. The judge erred in awarding only the European second-hand value, as the evidence established a higher value in Saudi Arabia.
- Parties
- Claimant/appellant: ALI REZA-DELTA TRANSPORT CO LTD; Defendant/respondent: UNITED ARAB SHIPPING CO SAG
- Jurisdiction
- England and Wales
- Judgment Date
- 02 May 2003
- Procedural Posture
- Civil Appeal / Appeal From High Court (mercantile List)
- Outcome
- Appeal allowed
- Legal Topics
- Measure of Damages, Market Value Vs Replacement Cost, Assessment of Quantum
Case Brief
Summary, issues, holding and outcome
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Parties
ALI REZA-DELTA TRANSPORT CO LTD
Claimant/appellant
UNITED ARAB SHIPPING CO SAG
Defendant/respondent
Procedural Posture
Civil Appeal / Appeal From High Court (mercantile List)
Legal Issues
- 1 Whether damages for destroyed equipment should be assessed at replacement cost or market value
- 2 How to determine market value where no local market exists
Ratio Decidendi
The proper measure of damages is the market value of the equipment in Saudi Arabia at the time of destruction, which must reflect the costs of transporting, importing, and adapting the equipment for use there. The judge erred in awarding only the European second-hand value, as the evidence established a higher value in Saudi Arabia.
Court Disposition
Appeal allowed
Orders
- Substitute award of US$227,400 for US$115,800
- Appellant awarded costs of appeal
Full Case Text
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