Thomson v STX Pan Ocean Co Ltd

The appeal, Thomson v STX Pan Ocean Co Ltd, involved the dispute between the charterer and the shipowner in a voyage charterparty. The primary issue was whether the charterer's fraudulent post-contractual representations induced the shipowner to delay terminating the charter, thereby incurring losses. The shipowner sought damages for the loss of use of the vessels due to the delay. The Federal Court of Appeal was tasked with determining the validity of the primary judge's findings and the measure of damages awarded.

The court had to decide whether the charterer's fraudulent representations induced the shipowner to delay terminating the charter and, if so, the appropriate measure of damages. The court also needed to address the shipowner's failure to provide evidence supporting their loss of profit claim due to the delay. The appeal raised questions about the applicability of the principles from Gould v Vaggelas and the sufficiency of the evidence presented to support the damages claim.

The court found that the primary judge was correct in inferring that the shipowner's delay in terminating the charter was at least partly induced by the charterer's fraudulent representations. The court also noted that the shipowner's failure to provide evidence of their loss of profit during the delay period was a significant issue. The appeal was allowed in part, and the damages claim was remitted to the primary judge for the purpose of receiving evidence on the loss of profit caused by the breach. The shipowner was ordered to pay the charterer's costs of the appeal.

The final orders of the court were to allow the appeal in part, remit the respondent's damages claim to the primary judge to receive evidence on loss of profit caused by the breach, and order the respondent to pay the appellant's costs of the appeal.