LAKATAMIA SHIPPING CO LTD AND OTHERS V NOBU SU/HSIN CHI SU AND OTHERS

[2014] EWHC 3611 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Cooke, 5 November 2014

Contracts - Forward Freight Agreement - Identity of parties to FFA - Available market - Sale of Goods Act 1979, section 50(3)

During the weekend of 5 and 6 July 2008 an oral agreement (the FFA Contract) was reached by which, in return for one Worldscale point (equivalent, in the event, to US$1.8 million) an FFA position (600,000 mt/month in the calendar year 2009 on Route TD3) would effectively be transferred for a one-month period from persons/entities on the defendants' side of the fence to the first claimant (Lakatamia) which was controlled by the fourth claimant Mr Haji-Ioannou. The claimants asserted that the first defendant, Mr Su and all of the defendant companies in the group under his control were parties to the contract with Lakatamia and Mr Haji-Ioannou, whereas the defendants contended that only the sixth defendant entered into the contract. The seventh defendant was the guarantor under a guarantee in respect of TMT's obligations under the FFA. The issues for determination by the judge were as to the identity of the parties to the FFA; the measure of loss suffered; and the effect of novation agreements concluded in November 2008.