Date: Fri, 30 Mar 2007 15:36

From: Robert Stevens

Subject: The Golden Victory

Rob,

Sometimes do you think one can take into account future events (depending on their certainty) in valuing the lost right (at the date of breach) [Lord Bingham, end of paras 14 & 19]?

Yes. Lord Bingham is right, I think, but places too much weight on the commercial certainty idea. What should be recoverable is the market value of the contractual right at the time of breach, the market reflecting future uncertainties (wars etc).

We see the same rules in play in conversion. If I convert your Bentley on 1 January, and then the market for Bentleys dramatically falls, when the claim comes to judgment I cannot reduce the damages payable by relying upon the market fall. I must pay the value of the (right to the) Bentley at the time of conversion.

If, by contrast, the market for Bentleys goes up in the period after conversion, you should be able to claim this increase as consequential loss if you can show you would not have disposed of the car.

For those who think The Golden Victory is right, should the charterers be able to reduce the damages they must pay by demonstrating that the owners would subsequently have repudiated the contract if they had not?

RS

<<<< Previous Message  ~  Index  ~  Next Message >>>>>