“After charterers' repudiation of a time charter of a cruise ship, owners later sold the vessel to a third party for more than US$23m. The Arbitrator found that the sale was made in mitigation of losses as the ship was valued at some US$7m at the time the vessel should have been redelivered. Therefore, he disallowed owners' damages. The Supreme Court confirmed the High Court ruling that owners' benefit was not legally caused by the breach of the charterparty. The breach could have been the occasion but not the legal cause for the sale, which remains a commercial decision made at the owners' own risk and the exercise of owners' proprietary right which they enjoy independent of the charterparty.”

“The rare concurrence of two individually not uncommon events (strong northerly gale and long waves) was an "abnormal occurrence" such that charterers were not in breach of the C/P safe port warranty (even if each event separately may have been characteristic of the port). Further, and in any event, the C/P joint insurance clause excluded rights of recourse between the parties, each of whom had agreed to look to insurers for indemnification rather than to each other in the event of total loss. “

“In an insurance claim under a hull and machinery policy, Owners had lied to insurers in order to strengthen their claim; however, the Court held that since the lie was irrelevant and immaterial to the claim (and therefore not a fraudulent device), insurers could not reject Owners' claim.”

“The Supreme Court dismissed Owners' appeal and confirmed that OWB's contract with Owners was such that Owners could not withhold payment and so Owners remained liable to pay OWB/ING.”

“The Supreme Court by a 4:1 majority reversed the Court of Appeal to hold that under the time charter, the vessel was off-hire throughout the period of an arrest caused by a dispute down the charterparty chain involving sub charterers and/or the parties to the commodity contract. Under the Charter, an arrest would not render the vessel off hire if caused by "Charterers or their Agents", but the Court found that those causing the arrest did not qualify as Charterers' agents.”