DALWOOD MARINE CO V NORDANA LINE AS (2009), [2009] EWHC 3394 (Comm)
Location: Case TypesMaritime    
Posted by: Law Brief Publishing 04/02/2010 16:22
Reducing damages for wrongful premature termination of a time charter to take into account benefits enjoyed by the Owners after the notional date on which the Vessel would (but for the breach) have been re-delivered

N time chartered a vessel from D. N redelivered the Vessel prematurely. Faced with no available market, D ordered the Vessel to another location, dry-docked her then delivered her to another charterer. The Vessel earned a significantly higher rate under this subsequent charter. The Tribunal took into account the reality of the Vessel’s subsequent employment when assessing D’s loss. D appealed, arguing that the Tribunal had erred in taking into account earnings of the Vessel after the date on which she would have been notionally redelivered under the charter.

The High Court dismissed the appeal. The Court held that in principle D was entitled to the benefit of the contractual right he had lost. Prima facie this was the hire that would have been earned less the hire actually earned for the period between the date of premature termination by N and when contractual redelivery would have taken place. Notwithstanding this, where an owner enjoyed a benefit from a substitute voyage which they would not have achieved but for the wrongful repudiation of charter, this may be taken into account when assessing damages.
Court: High Court (Commercial Court) (England and Wales)
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