Transport & Logistics News - March 2017: part 5

Star Polaris LLC v HHIC-PHIL Inc (2016) EWHC 2941

This was a judgment of Sir Jeremy Cooke, being an appeal from an award from three arbitrators which included two QCs and Sir David Steele, a retired admiralty judge from the High Court in England. The appeal raised two questions:

1. what is the correct construction of the phrase "consequential or special losses, damages or expenses" in Article IX.4(a) of the ship building contract in issue, and in particular, does that phrase mean such losses, damages or expenses as fall within the second limb of Hadley v Baxendale (1854) 9 Ex 341? Alternatively, does the phrase have a "cause and effect" meaning, as held by the tribunal? and
2. if the tribunal is right as to the meaning of "consequential or special losses, damages or expenses", on a proper construction of Article IX.4(a) does diminution in value constitute a "consequential or special loss"?