Skyros Maritime Corporation and another (Respondents) v Hapag-Lloyd AG (Appellant)

Permission to Appeal application lodged

Case summary
Permission to Appeal
Previous proceedings

Case summary

Case ID

UKSC/2026/0002

Parties

Appellant(s)

HAPAG-LLOYD AG

Respondent(s)

(1) SKYROS MARITIME CORPORATION (2) AGIOS MINAS SHIPPING COMPANY

Issue

When a time-chartered vessel is redelivered late, by which time the owner is contractually committed to selling the vessel and the sale contracts preclude the owner from chartering it again, are the owners entitled to recover substantial damages assessed by reference to the market rate for the period of the overrun?

Facts

The First Respondent owned a vessel known as M.V. ‘SKYROS’ (“Skyros”). The Second Respondent owned a vessel known as M.V. ‘AGIOS MINAS’ (“Agios”). Together, Skyros and Agios are referred to as “the Vessels”. By time charters dated 20 February 2017 (Skyros) and 23 March 2020 (Agios), the Respondents chartered the Vessels to the Appellants. Each charterparty specified the latest date and time on which the Vessels could be lawfully redelivered. Prior to latest contractual redelivery dates, the Respondents each entered into a Memoranda of Agreement (“MOA”) to sell the relevant Vessel. The MOAs precluded the Respondents from extending the existing time charters or entering into new time charters. Skyros was redelivered to the First Respondent over two days late. Agios was redelivered to the Second Respondent over seven days late. For the purposes of this appeal, it is assumed that, even if the Vessels had been redelivered on time, each Vessel would have been delivered promptly to its buyers and the Respondents would not have re-let either Vessel in the charter market. On 3 November 2022, the Respondents commenced two arbitrations against the Appellants pursuant to the arbitration agreements in the charterparties. Following a hearing of the preliminary issue of whether the Respondents were entitled to recover substantial damages or only nominal damages, the tribunal determined that the Respondents were entitled to substantial damages, compensation or other monetary relief. On 6 March 2024, the Appellant commenced an arbitration claim in the Commercial Court seeking permission to appeal the Partial Final Awards pursuant to section 69 Arbitration Act 1996. The appeals were heard by Mr Justice Bright, who held that Respondents were entitled to only nominal damages. The Respondents successfully appealed to the Court of Appeal, which restored the arbitrators’ determination and remitted the case to the tribunal for the assessment of damages. The Appellant now appeals to the Supreme Court.