Stocznia Gdynia SA v Gearbulk Holdings Ltd

Stocznia Gdynia SA v Gearbulk Holdings Ltd

Article 10 of the contract does not exclude Gearbulk's right to recover damages for loss of bargain at common law following a repudiatory breach by the Yard; exercising the contractual right of termination in these circumstances is not inconsistent with claiming such damages, and the contract does not provide an exclusive code displacing common law remedies.

Parties
Claimant/respondent: Stocznia Gdynia S. A.; Defendant/appellant: Gearbulk Holdings Ltd
Jurisdiction
England and Wales
Judgment Date
13 February 2009
Procedural Posture
Commercial Contract Arbitration Appeal / Appeal From High Court to Court of Appeal
Outcome
Appeal allowed; arbitrator's award restored.
Legal Topics
Termination of Contract, Repudiatory Breach, Damages for Loss of Bargain, Exclusion Clauses, Liquidated Damages, Election Between Remedies
Commercial Law Contract Law Arbitration Termination of Contract Repudiatory Breach Damages for Loss of Bargain Exclusion Clauses Liquidated Damages +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 4 Authorities cited 15 Party arguments 2
Sign in to unlock

Parties

Stocznia Gdynia S. A.

Claimant/respondent

Gearbulk Holdings Ltd

Defendant/appellant

Procedural Posture

Commercial Contract Arbitration Appeal / Appeal From High Court to Court of Appeal

Legal Issues

  1. 1 Whether Article 10 of the contract excludes common law rights of termination and damages for loss of bargain
  2. 2 Whether exercising a contractual right of termination precludes a claim for damages at common law
  3. 3 Whether the contract provides an exclusive code for remedies on termination

Ratio Decidendi

Article 10 of the contract does not exclude Gearbulk's right to recover damages for loss of bargain at common law following a repudiatory breach by the Yard; exercising the contractual right of termination in these circumstances is not inconsistent with claiming such damages, and the contract does not provide an exclusive code displacing common law remedies.

Court Disposition

Appeal allowed; arbitrator's award restored.

Orders

  • Set aside the judgment of the High Court.
  • Restore the arbitrator’s award in favour of Gearbulk.