Source: All England Reporter
Publisher Citation: [2002] All ER (D) 400 (Mar)
Court: Court of Appeal, Civil Division

Pill, Longmore LJJ and Sir Martin Nourse

Representation Bernard Eder QC and Joe Smouha (instructed by Stephenson Harwood) for the claimant.
  Dominic Kendrick QC and Richard Waller (instructed by Sinclair, Roche & Temperley) for the defendant.
Judgment Dates: 26 March 2002


Ship - Sale - Contract - Claimant purchasing two Ro-Ro vessels from defendant shipbuilder - Contract containing representations as to capacity of vessels - Claimant contending vessels deficient as to capacity - Judge finding vessels deficient by lack of four slots only - Judge awarding damages according to contractual scale - Whether judge in error.

The Case

In an action brought by the purchaser of two Ro-Ro vessels in respect of their capacity, the judge had been entitled to find that on the proper construction of the contractual specification, the vessels were deficient as to capacity by four spaces. The judge had erred, however, in awarding the claimant damages under the contract's liquidated damages clause, as the deficiency in capacity would only become apparent once the vessels became fully operational, rather than on delivery, as provided for by the liquidated damages clause.

Practice Areas

If you are a LexisLibrary subscriber you can read more about this case here.