Tagged: TRANSFERRED LOSS PRINCIPLE

Palmali Shipping SA v Litasco SA– QBD (Comm Ct) (Foxton J) [2020] EWHC 2581 (Comm) – 1 October 2020

CONTRACT OF AFFREIGHTMENT – FAILURE TO HONOR MINIMUM QUANTITY OF CARGO CONTRACT – LOSS OF PROFITS – TRANSFERRED LOSS PRINCIPLE
Palmali sought US$1.9 billion in damages from Litasco under a long-term contract of affreightment (COA). Palmali contended the COA gave it exclusive rights to carry oil products for Litasco between multiple ports in the Caspian Sea, Black Sea and the Mediterranean. Further, Palmali asserted the COA guaranteed Litasco would ship a minimum quantity of 400,000 MT (the Minimum Quantity Obligation), with a total monthly volume of 700,000 MT/month.