PRIYANKA SHIPPING LTD V GLORY BULK CARRIERS PTE LTD

[2019] EWHC 2804 (Comm), Commercial Court, Queen’s Bench Division, David Edwards QC (sitting as a High Court Judge) 28 October 2019

Contracts – Injunctions – Negotiated damages – Ship sale contract containing clause restricting use of vessel – Buyer in breach of clause – Seller seeking injunction to prevent future breaches and negotiated damages

The claimant was the buyer of the vessel CSK Glory and the defendant was the seller. The memorandum of agreement, dated 26 April 2019, was on the Saleform 1993 and contained a clause 19 specifying that the vessel was sold for the purpose of demolition only, the buyers guaranteeing not to trade the vessel or sell it for any purpose other than demolition. The vessel was delivered on 14 May 2019. In a softening demolition market, buyers entered into voyage fixtures for the vessel on 31 May 2019, on 15 July 2019 and again immediately before the hearing. The buyer commenced this action seeking a declaration that the seller was entitled to nominal damages only for the breach of clause 19. The seller sought an injunction against fixtures and damages at common law, damages in addition to an injunction or damages in lieu of an injunction.