Home MarketsChartering Clyde & Co Shipping Update – The “NEW FLAMENCO”

Clyde & Co Shipping Update – The “NEW FLAMENCO”

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Elizabeth Turnbull

Elizabeth Turnbull


The Court of Appeal holds that benefit arising from the sale of a vessel can reduce claim for repudiation of charterparty

In a judgment delivered on 21 December 2015, the Court of Appeal considered to what extent charterers could mitigate a claim for damages following the repudiation of a charterparty.

The Court of Appeal unanimously overturned the first instance decision, and confirmed that when calculating damages arising from the charterers’ repudiation where there is no available market, the financial benefit obtained by the owners as a result of this repudiation – in this case a financial gain from the early sale of their vessel – should be taken into account as a mitigating factor. The early sale took place two years before the contractual redelivery date, and preceded a substantial two-year drop in the shipping market.

Marcia Perucca

Marcia Perucca

This important Court of Appeal ruling is likely to have widespread implications for the law of mitigation and damages in the context of contract law generally. In this briefing, Elizabeth Turnbull and Marcia Perucca, who acted for the successful charterers, review the facts of the case and analyse the Court of Appeal ruling.

To read the full update, please click here.


  Elizabeth Turnbull



 Marcia Perucca


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