Glory Wealth Shipping Pte Ltd. v Korea Line Corporation

Glory Wealth Shipping Pte Ltd. v Korea Line Corporation

Where there is no available market at the date of termination of a charterparty, damages are to be assessed by reference to the actual loss of the owner, subject to the usual rules of mitigation. The later revival of a market for the unexpired period does not in itself provide the correct measure of damages, though it may be relevant to mitigation or in calculating future loss if damages are assessed before the end of the contractual period.

Parties
Applicant/claimant/charterer/section 69 Applicant: Glory Wealth Shipping Pte Limited; Respondent/owner/section 69 Respondent: Korea Line Corporation
Jurisdiction
England and Wales
Judgment Date
14 July 2011
Procedural Posture
Commercial Arbitration Appeal / Judgment on Appeal Under Section 69 Arbitration Act 1996
Outcome
Appeal allowed; award remitted to Tribunal for assessment of actual losses.
Legal Topics
Measure of Damages, Repudiatory Breach, Charterparty, Mitigation of Loss
Commercial Law Arbitration Shipping Law Measure of Damages Repudiatory Breach Charterparty Mitigation of Loss

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Parties

Glory Wealth Shipping Pte Limited

Applicant/claimant/charterer/section 69 Applicant

Korea Line Corporation

Respondent/owner/section 69 Respondent

Procedural Posture

Commercial Arbitration Appeal / Judgment on Appeal Under Section 69 Arbitration Act 1996

Legal Issues

  1. 1 What is the correct measure of damages for a charterer’s repudiation of a time charter where there is, at the date of the termination of the charter, no market for the unexpired period and such a market only revives at a much later date?
  2. 2 Is there a rule or principle of law precluding a tribunal from assessing damages on the basis of a combination of actual and market-based losses?

Ratio Decidendi

Where there is no available market at the date of termination of a charterparty, damages are to be assessed by reference to the actual loss of the owner, subject to the usual rules of mitigation. The later revival of a market for the unexpired period does not in itself provide the correct measure of damages, though it may be relevant to mitigation or in calculating future loss if damages are assessed before the end of the contractual period.

Court Disposition

Appeal allowed; award remitted to Tribunal for assessment of actual losses.

Orders

  • The award is remitted to the Tribunal to consider the Owners’ actual losses accruing up to 21 June 2011 (the contractual date of expiry of the charterparty).