Fulton Shipping Inc of Panama v Globalia Business Travel S.A.U. (Formerly Travelplan S.A.U.) [2015] EWCA Civ 1299 (21 December 2015)

Fulton Shipping Inc of Panama v Globalia Business Travel S.A.U. (Formerly Travelplan S.A.U.) [2015] EWCA Civ 1299 (21 December 2015)

Where the sale of the vessel arises out of the consequences of the breach and is undertaken in reasonable mitigation of loss, the benefit (difference in value between sale at breach and value at end of charter) must be brought into account in assessing damages, even if the owner was not obliged to sell and even if the benefit is not of the same kind as the loss.

Citation
[2015] EWCA Civ 1299
Parties
Respondent/owner: Fulton Shipping Inc of Panama; Appellant/charterer: Globalia Business Travel S. A. U. (formerly Travelplan S. A. U.)
Jurisdiction
England and Wales
Judgment Date
21 December 2015
Procedural Posture
Appeal From Arbitration Award (commercial Court, Queen's Bench Division) / Court of Appeal Judgment
Outcome
Appeal allowed; arbitrator's award reinstated
Legal Topics
Measure of Damages, Mitigation of Loss, Time Charterparty, Breach of Contract, Assessment of Benefits in Damages
Commercial Law Maritime Law Contract Law Measure of Damages Mitigation of Loss Time Charterparty Breach of Contract Assessment of Benefits in Damages

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 15 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Fulton Shipping Inc of Panama

Respondent/owner

Globalia Business Travel S. A. U. (formerly Travelplan S. A. U.)

Appellant/charterer

Procedural Posture

Appeal From Arbitration Award (commercial Court, Queen's Bench Division) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the benefit from selling the vessel at a higher price due to early redelivery should be credited against owner's loss of profits claim for breach of charterparty
  2. 2 Whether the sale of the vessel was sufficiently caused by the breach to require the benefit to be brought into account in assessing damages

Ratio Decidendi

Where the sale of the vessel arises out of the consequences of the breach and is undertaken in reasonable mitigation of loss, the benefit (difference in value between sale at breach and value at end of charter) must be brought into account in assessing damages, even if the owner was not obliged to sell and even if the benefit is not of the same kind as the loss.

Court Disposition

Appeal allowed; arbitrator's award reinstated

Orders

  • The benefit from the sale of the vessel at a higher price due to early redelivery must be credited against the owner's claim for loss of profits.
  • No damages recoverable by owners as the credited benefit exceeds the loss of profits.