Globalia Business Travel S.A.U. (formerly TravelPlan S.A.U.) of Spain (Respondent) v Fulton Shipping Inc (Appellant)
Case ID: UKSC 2016/0026
What is the correct measure of shipowners' damages following acceptance of a charterers' repudiatory breach of charter? In particular, can a "benefit", said to consist in the avoidance of a fall in the capital value of the ship over the unexpired balance of the charter period because of the vessel's sale shortly after the repudiation, be set off against owners' claim to recover loss of earnings for that period?
The appellant, the owners of the cruise ship "New Flamenco", accepted the respondent charterers' early redelivery of the ship as a repudiatory breach of contract. The owners sold the vessel after the breach in October 2007 at a high market price, before the market collapsed and her value fell substantially by 2009. The owners claimed loss of hire for the remaining two year period of the charter, but the charterers said that the owners had benefited financially from selling the vessel in 2007, and that this could be set off against the damages for loss of hire, leaving the owners with no damages. The arbitrator found that the charterers were entitled to such credit. The judge overturned that decision, but the Court of Appeal allowed the appeal.
Fulton Shipping Inc
Globalia Business Travel S.A.U. (formerly TravelPlan S.A.U.) of Spain
Lord Neuberger, Lord Mance, Lord Clarke, Lord Sumption, Lord Hodge
Hearing start date
21 Nov 2016
Hearing finish date
24 Nov 2016
|21 Nov 2016||Morning session||Afternoon session|
|22 Nov 2016||Morning session||Afternoon session|
|23 Nov 2016||Morning session||Afternoon session|
|24 Nov 2016||Morning session|