In 2020 I provided an insight, summarising the first instance decision of Baker, J who held that a shipowner’s remedy for breach of charterer’s obligation to load and discharge within laytime could include damages and was not solely limited to demurrage.

The insight may be found here. 

In 2021 the Court of Appeal judgment, given by Males LJ, reversed the High Court’s decision. It found that demurrage payable by charterers liquidates the whole of damages payable by charterers to owners for failing to complete cargo operations within the laytime allowed and not merely some of them. Thus, the cargo claim liabilities in question would be included and could not be recovered by shipowners as an additional loss.

I published a further insight regarding the Court of Appeal’s decision here.

I concluded with a remark that the Court of Appeal’s judgment would sit well based on the need and desirability for clarity and certainty in the commercial, shipping market. It would also, no doubt, offer some comfort for charterers, confining their liability for damages solely to demurrage when laytime is exceeded.

 Permission to appeal to the Supreme Court was refused by the Court of Appeal but granted by the Supreme Court in September 2022.

See here.

The ultimate determination was thus awaited and the case was expected to be heard in June 2023.

A settlement has now been reached.

Consequently, for the moment, the Court of Appeal’s decision remains uncontested and settled law.