The Eurus

It is a truism that when persons commit civil wrongs they are not accountable for the infinite consequences of their actions but that, as a matter of policy, the law limits liability and at some point relieves the wrongdoer of any further responsibility. In relation to a claim for damages for breach of contract this policy finds expression in the principle of remoteness of loss. However, where an action is brought to recover monies under an indemnity clause, the question arises whether contractual, other, or indeed any, principles of remoteness are applicable or whether the policy underlying those principles is reflected in other applicable doctrines such as causation. These were the issues before the Commercial Court in The Eurus 1 in the context of a charterparty.