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'''TIME CHARTER: REPUDIATION: QUANTUM OF DAMAGES: WHETHER CREDIT TO BE GIVEN FOR CAPITAL VALUE OF VESSEL SOLD ON REPUDIATION FOR A GREATER SUM THAN ITS VALUE ON CONTRACTUAL REDELIVERY DATE: ARBITRATION ACT 1996 SECTION 69 APPEAL'''
'''Note: this decision has been overruled by the Supreme Court in a judgment dated 28 June 2017 - see [[http://www.onlinedmc.co.uk/index.php/Fulton_Shipping_v_Globalia_Business_Travel_-_The_New_Flamenco_-_Supreme_Court_Decision]]
'''Summary'''
In reversing the decision of the High Court, - see [[http://www.onlinedmc.co.uk/index.php/Fulton_Shipping_v_Globalia_Business_Travel_-_The_New_Flamenco]] - the Court of Appeal held that, on the charterers’ earlier repudiation of the charter, the owners were obliged to give credit to the charterers for the capital value of selling the vessel for a greater sum than the value of the vessel at the contractual date for redelivery under the charter, as the repudiation was the cause of the capital gain, it having arisen out of the consequences of the breach and being done in the ordinary course of business, where there was no available market to charter the vessel.
Case note contributed by Jim Leighton, LLM (Maritime Law), LLB (Hons), BSc (Hons), Solicitor of England & Wales, and International Contributor to DMC’s Case Notes
