Title

Unpacking the compensatory principle: Causation, mitigation, certainty of loss and remoteness

Publication Type

Case

Publication Date

2-2016

Abstract

The MTM Hong Kong The High Court decision of Louis Dreyfus Commodities Suisse SA v MT Maritime Management BV (The MTM Hong Kong) affirms that the compensatory principle mandates the assessment of actual loss resulting from the breach of a charterparty. Owing to the unexpected delay in obtaining a substitute charter after the original charterers had repudiated the charterparty. The MTM Hong Kong raised a previously unconsidered issue: is the court allowed to take into account the vessel owners’ losses occurring after the date that the charter voyage would have been completed? Under the Smith v McGuire measure of compensation, an owner is conventionally entitled only to the difference between what the vessel would have earned if the charter voyage had been performed, and what the vessel actually earned during the period of the repudiated charter voyage.

Keywords

compensatory principle, charterparty, compensation, shipping

Discipline

Commercial Law

Research Areas

Commercial Law

Publication

Lloyd's Maritime and Commercial Law Quarterly

Volume

[2016]

First Page

33

Last Page

41

ISSN

0306-2945

Publisher

Lloyds of London Press Ltd

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