International Trade Update on Damages for Breach/Repudiation

Luke Pearce will discuss the recent decision of Leggatt J in MSC v Cottonex, raising questions such as:
• Whether and in what circumstances a duty to mitigate can apply in cases involving liquidated damages (an in particular demurrage claims)?
• In what circumstances will the “legitimate interest” principle (White & Carter v McGregor) deprive a party of the right to affirm a contract following a repudiatory breach?
• What is the relationship between the doctrine of penalty clauses and the “legitimate interest” principle, and to what extent are the principles founded on considerations of “good faith”?

Belinda McRae will discuss the contribution of the Court of Appeal’s judgment in The New Flamenco to the law of causation and mitigation, in particular:
• In what circumstances may a benefit or credit be taken into account when assessing damages for breach or repudiation of a time charter?
• What types of benefit or credit may be taken into account?
• What is the relevance of whether there is an available market to this analysis?

Peter Daniel will discuss:
• The key features of quantum in both available and no available markets;
• The credit that owners should recognise for actual earnings, costs and mitigation;
• Discounting for the time value of money (and how The Kildare has developed in practice);
• The theoretical basis of capital value and its relevance to quantum and mitigation with particular reference to The New Flamenco;
• The concept of a wasting asset, depreciation and its relevance to liquidated damages such as demurrage with reference to MSC v Cottonex; and
• Potential new issues presented by option periods and purchase options.

Chair:The Rt Hon Lord Justice Tomlinson
Panellists:Peter Daniel – Moore Stephens
Luke Pearce – 20 Essex Street
Belinda McRae - 20 Essex Street
Venue:Moore Stephens
150 Aldersgate Street
Time:6.00pm - 8.00pm
CPD Points:This event will be accredited for 2 CPD points