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Are Owners bound to give credit for benefit obtained following Charterers’ rep…

By • Jul 23rd, 2014 • Category: Ince & Co Podcasts by Coracle

Podcast from international law firm Ince & Co

Are Owners bound to give credit for benefit obtained following Charterers’ repudiation

  • Ince & Co

    http://incelaw.com/en/knowledge-bank/publications/credit-for-benefit-obtained-following-charterers-repudiation

    Fulton Shipping Inc v. Globalia Business Travel S.A.U. (New Flamenco) [2014] EWHC 1547 (Comm)

    In a significant case regarding measure of loss and mitigation of damages, the Commercial Court considered whether Owners, who were claiming damages for the Charterers’ early redelivery and repudiation of a time charterparty, had to give credit for the capital value of the vessel, sold by the Owners upon the Charterers’ repudiation for a greater sum than the value of the vessel at the contractual date of redelivery under the charterparty. Following a review of several leading authorities on this issue, the Commercial Court held that no such credit should be given since the benefit obtained by the Owners in realising the capital value of the vessel was not legally caused by the Charterers’ breach.