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Flame SA v Glory Wealth Shipping PTE Ltd

Mr Justice Teare has delivered judgment in Flame SA v Glory Wealth Shipping PTE Ltd, an arbitration appeal and s.68 challenge involving a claim for over $5 million under a long-term contract of affreightment. The case concerns a question of importance to the general law of contract, namely whether it is appropriate in assessing damages for repudiatory breach to take account of an anticipatory but unaccepted breach by the "innocent" party. The interplay between the House of Lords decisions in The Golden Victory [2007] 2 AC 353 and Gill & Duffus v Berger [1984] AC 382 is discussed, as well as academic comments by Sir Guenter Treitel, Professor Michael Bridge and Professor Francis Reynolds. The case is also interesting in that it touches on the extent of the relationship necessary between disponent owners and a vessel nominated into a COA.

Members of Chambers: Christopher Hancock QC and Angharad Parry acted for the Claimant (instructed by Thomas Cooper), and Lawrence Akka QC acted for the Defendant (instructed by Holman Fenwick Willan).