Priyanka Shipping Ltd v Glory Bulk Carriers PTE Limited [2019]

Priyanka Shipping Ltd v Glory Bulk Carriers PTE Limited [2019] EWHC 2804 — 28 October 2019 (David Edwards QC)

“Following the sale of a Capesize bulk carrier for demolition only and despite their undertaking not to trade her further, buyers continued to trade the vessel sought the lifting of the covenant. Sellers rejected that request (as the purpose of the sale was to reduce oversupply in the market) and sued for compensation, including 'negotiating damages' being a sum of money as might reasonably have been demanded by them in exchange for permitting the continuation of the breach of the covenant. The Commercial Court rejected the claim, holding that the undertaking not to trade was akin to a non-compete obligation which did not fall within the category of cases where 'negotiating damages' were available as a measure of a sellers' loss.”

Angeliki Georgouli
E. G. Arghyrakis & Co.
30th October 2019