The “NEW FLAMENCO” – Assessing damages under English law
This case went right up to the Supreme Court. The court was called upon to decide what the correct measure of damages were in circumstances where an innocent party, Owners here, obtained a capital windfall by the sale of the subject vessel (“New Flamenco”) which the guilty party, Charterers, alleged was a step in mitigation, would not have occurred had it not been for their breach i.e. causation was established and thus the windfall should be credited to them so as to reduce Owners’ damages claim.
The question was an important one for if answered in Charterers favour it would extinguish Owners’ claim in its entirety. Consequently, the guilty party would reap the benefit of the windfall.
Download here: The-New-Flamenco PDF