OMAK MARITIME LTD V MAMOLA CHALLENGER SHIPPING CO (THE "MAMOLA CHALLENGER")

[2010] EWHC 2026 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Teare, 4 August 2010

Charterparty (time) - Damages - Recovery of expenditure incurred under a contract as damages for breach of that contract

This was the appeal of charterers O against an arbitral award in favour of owners M. The appeal concerned the basis in law of the principle permitting a contracting party to claim, as damages for breach of contract, expenditure wasted as a result of a breach of that contract. O had repudiated the charterparty at a time when market hire rates were higher than the charterparty rate, so that M did not suffer any net loss, because she was released for trade at higher rates. M nevertheless obtained damages from the arbitral tribunal, namely the expenses incurred in preparing to perform the charterparty. O appealed, arguing that the tribunal had erred in law.