Glory Wealth Shipping Pte Ltd. v Korea Line Corporation [2011] EWHC 1819 (Comm) (14 July 2011)

Glory Wealth Shipping Pte Ltd. v Korea Line Corporation [2011] EWHC 1819 (Comm) (14 July 2011)

Where there is no available market for the unexpired period of a time charter at the date of termination, and such a market only revives later, damages are to be assessed by reference to the owner's actual loss, not by reference to the subsequently revived market. The revival of the market may be relevant to mitigation or future loss, but does not in itself provide the correct measure of damages.

Citation
[2011] EWHC 1819 (Comm)
Parties
Applicant/claimant/charterer: Glory Wealth Shipping Pte Limited; Respondent/owner: Korea Line Corporation
Jurisdiction
England and Wales
Judgment Date
14 July 2011
Procedural Posture
Section 69 Arbitration Act 1996 Appeal (commercial Court) / Judgment on Appeal From Arbitral Award
Outcome
Appeal allowed. Arbitral award set aside in part and remitted to the Tribunal for reassessment of damages on the basis of actual loss.
Legal Topics
Measure of Damages for Repudiatory Breach, Available Market Doctrine, Mitigation of Loss, Assessment of Damages in Shipping Contracts
Commercial Law Shipping Law Arbitration Measure of Damages for Repudiatory Breach Available Market Doctrine Mitigation of Loss Assessment of Damages in Shipping Contracts

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 4 Authorities cited 9 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Glory Wealth Shipping Pte Limited

Applicant/claimant/charterer

Korea Line Corporation

Respondent/owner

Procedural Posture

Section 69 Arbitration Act 1996 Appeal (commercial Court) / Judgment on Appeal From Arbitral Award

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 termination, no market for the unexpired period and such a market only revives at a much later date?
  2. 2 Is a tribunal entitled to assess damages on a hybrid basis (part actual, part market-based) when a market revives after breach?

Ratio Decidendi

Where there is no available market for the unexpired period of a time charter at the date of termination, and such a market only revives later, damages are to be assessed by reference to the owner's actual loss, not by reference to the subsequently revived market. The revival of the market may be relevant to mitigation or future loss, but does not in itself provide the correct measure of damages.

Court Disposition

Appeal allowed. Arbitral award set aside in part and remitted to the Tribunal for reassessment of damages on the basis of actual loss.

Orders

  • The award is remitted to the Tribunal to consider the Owners' actual losses accruing up to 21 June 2011 (the contractual expiry date).
  • The claim for market-based damages from July 2009 is dismissed.