Publication Type
Case note/Digest
Version
publishedVersion
Publication Date
1-2016
Abstract
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
Corporate, Finance and Securities Law
Publication
Lloyd's Maritime and Commercial Law Quarterly
Volume
[2016]
Issue
1
First Page
33
Last Page
41
ISSN
0306-2945
Publisher
Informa
Citation
GOH, Yihan and YIP, Man.
Unpacking the compensatory principle: Causation, mitigation, certainty of loss and remoteness: The MTM Hong Kong. (2016). Lloyd's Maritime and Commercial Law Quarterly. [2016], (1), 33-41.
Available at: https://ink.library.smu.edu.sg/sol_research/1673
Copyright Owner and License
Publisher
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://www.i-law.com/ilaw/doc/view.htm?id=361590