PALMALI SHIPPING SA V LITASCO SA

[2021] EWHC 1161 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Foxton, 6 May 2021

Contracts – Contracts of affreightment – Procedure – Permission to amend particulars of claim

In this litigation, the defendant Litasco, a subsidiary of the Russian oil company Lukoil, had applied for summary judgment following the judge’s decision that the basis on which the claimant Palmali had quantified its claim for damages of US$1.9 billion was not seriously arguable. In the original claim, Palmali had failed to distinguish between losses attributable to “own fleet” and “third party” vessels, treating all vessels owned by the group of companies or bareboat chartered in as a single entity for the purposes of the alleged breach of the contract of affreightment. The claimant applied for permission further to amend its Particulars of Claim in which it sought damages of now US$151 million under what it contended was a long-term contract of affreightment with the defendant.