30-11-2017

Benefitting from early redelivery: the NEW FLAMENCO story

Globalia Business Travel S.A.U. (formerly TravelPlan S.A.U.) of Spain v Fulton Shipping Inc of Panama (The New Flamenco) [2017] UKSC 43

The English Supreme Court decided in June how damages should be calculated when owners hit with early redelivery then do better than would otherwise have been expected.

After early redelivery in 2007 in breach of charterparty, owners then sold the vessel. They claimed for net loss of profit for hire from actual redelivery until the agreed redelivery date in 2009. Charterers argued that:

  • - The vessel had been sold in 2007 for significantly more than the 2009 market value;
  • - Owners had therefore benefitted from the early redelivery by over US$15 million;
  • - Owners should recover nothing because the sale profit was more than the loss of profit claim.

The Supreme Court concluded owners could still claim their full net loss of profit as the sale had not been caused by the early redelivery itself. This will be welcome news to owners.

For further information please contact: David Morriss, Partner, HFW; email: david.morriss@hfw.com; Tel: 0044 20 7264 8142.

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