The case of Flame SA v Glory Wealth Shipping Pte Ltd (The
"GLORY WEALTH") [2013] emphasises the importance of
the compensatory principle in the assessment of damages. The Court
showed its reluctance to find that an innocent party be placed in a
better position than it would have been in, had the party in breach
not repudiated the contract.
Glory Wealth as "disponent owners of the Glory Wealth
to be nominated motorship" (the Owner) and Flame AS (the
Charterer) entered into a contract of affreightment dated 19 August
2008 (the COA). Following the collapse of the market shortly
thereafter, the charterer failed to declare laycans in respect of a
number of shipments under the COA. The Owner commenced London
arbitration proceedings, and claimed that the measure of loss that
it was entitled to was the difference between the COA rate and
market rate, this being USD 5,426,608.60. The Charterer argued
that, as a result of the market collapse, the Owner would have
