Palmali Shipping SA v Litasco SA– QBD (Comm Ct) (Foxton J) [2020] EWHC 2581 (Comm) – 1 October 2020

Charterparty – Contract of affreightment – Claimant alleging that defendant failed to ship minimum quantity of cargo during contract period – Claimant pleading claim for loss of profits without giving credit for cost of chartering vessels that would have been required to lift the cargoes – Whether defendant entitled to summary judgment on issue of quantification of damages – Whether claimant entitled to amend particulars of claim to include claim under transferred loss principle

The claimant (Palmali) brought proceedings against the defendant (Litasco) claiming damages of c.US$1.9 billion under a long-term contract of affreightment (the COA). Palmali contended that the COA gave it the exclusive right to carry oil products to be shipped by Litasco between various ports in the Caspian Sea/Black Sea/Mediterranean range up to a total monthly volume of 700,000 mt/month, and obliged Litasco to ship a minimum monthly quantity of 400,000 mt (the Minimum Quantity Obligation).