The Supreme Court has today handed down Judgment allowing
Owners' appeal in the "New Flamenco" (see our
previous blog of
2 March 2016 and our Client Alerts of
25 February 2016 and 8 November 2016).
For those of you who are not familiar with the case, Charterers
were in repudiatory breach of the Charterparty, which Owners
accepted as terminating the Charterparty, and the vessel was
redelivered in October 2007. At that time the Owners sold her for
USD 23,765,000, whereas if the vessel had been redelivered at the
end of the Charterparty term, in 2009, her sale value would have
been only USD 7,000,000. The question was whether that benefit,
i.e. the increase in sale price in 2007 over and above that which
could have been obtained in 2009, should be set-off against
Owners' claim for damages calculated by reference to the net
loss of profits which they alleged they would have earned during
the additional two year Charterparty period. If the increase in
sale value were
