Omak Maritime Ltd. v. Mamola Challenger Shipping Co. (The “Mamola Challenger”) – QBD (Comm. Ct.), 4 August 2010

TIME CHARTER — RELIANCE DAMAGES — EXPECTED DAMAGES — LOSS OF PROFITS — Charterer Award

In reversing the tribunal’s reliance damages award, the Court disallowed the Owner to be compensated for expenses incurred by Charterer-mandated Vessel modifications when, in fact, the Owner did not suffer an economic loss from Charterer’s repudiatory breach. In fact, due to a rising market, the Owner benefited by significantly higher earnings than if the contract had been performed. Reliance damages are not to put the claimant in a better position than if the contract had been performed.