Pacific Inter-Link Sdn Bhd v Owners of the Vessel “Asia Star”: Breach of Charterparty and Mitigation of Loss
In Pacific Inter-Link Sdn Bhd v Owners of the Vessel “Asia Star”, the High Court of Singapore heard a claim by Pacific Inter-Link Sdn Bhd (“PIL”) against the owners of the vessel Asia Star (“OAS”) for breach of a charterparty agreement. PIL claimed damages for losses incurred due to the cancellation of sale contracts after OAS failed to provide a vessel fit for loading. The court found OAS liable for breach of contract but reduced the damages awarded to PIL to US$302,000, citing PIL's failure to take reasonable steps to mitigate its losses by chartering an alternative vessel.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for the Plaintiff; damages awarded in the amount of $302,000 (assumed USD, as the judgment involves US dollar amounts and international trade).
1.3 Case Type
Admiralty
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Malaysian company PIL sued OAS for breach of charterparty. The court found OAS liable but reduced damages due to PIL's failure to mitigate loss.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Pacific Inter-Link Sdn Bhd | Plaintiff | Corporation | Judgment for Plaintiff | Partial | |
| Owners of the Vessel “Asia Star” | Defendant | Other | Partial Loss | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chew Chin Yee | Assistant Registrar | Yes |
4. Counsels
4. Facts
- PIL chartered the Asia Star from OAS to carry refined palm oil to Turkey.
- The Asia Star was found unfit for loading upon inspection on 19 January 2004.
- PIL rejected the vessel, and OAS subsequently cancelled the charter party.
- PIL claimed losses due to cancellation of sale contracts with suppliers and buyers.
- PIL did not immediately charter the Puma, an alternative vessel, after the Asia Star was rejected.
- PIL did not inform its suppliers and Agrima about the rejection of the Asia Star and the availability of the Puma in a timely manner.
5. Formal Citations
- Asia Star, Adm in Rem 30/2004, [2008] SGHC 92
6. Timeline
| Date | Event |
|---|---|
| PIL's representatives inspected the Asia Star and found it unfit for loading cargo. | |
| CSC Oil Transportation (S) Pte Ltd cancelled the charterparty. | |
| OAS invited PIL to re-inspect the tanks after cleaning. | |
| OAS cancelled the charter party. | |
| Indomas repudiated its contract with PIL. | |
| Agrima cancelled the majority of its purchase contracts with PIL. | |
| Agrima cancelled the majority of its purchase contracts with PIL. | |
| Loading was done in February 2004 on the Chembulk Barcelona. | |
| Decision Date |
7. Legal Issues
- Breach of Charterparty
- Outcome: The court found the defendant liable for breach of the charterparty.
- Category: Substantive
- Failure to Mitigate Loss
- Outcome: The court found that the plaintiff failed to take reasonable steps to mitigate its losses.
- Category: Substantive
- Related Cases:
- [1912] AC 673
- [1919] 2 KB 581
- [2001] 1 SLR 540
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Charterparty
10. Practice Areas
- Admiralty
- Shipping
- Commercial Litigation
11. Industries
- Shipping
- Commodities Trading
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| British Westinghouse Electric Co Ltd v Underground Electric Rhys | N/A | Yes | [1912] AC 673 | N/A | Cited for the principle that a plaintiff suing for damages in breach of contract has the duty of taking all reasonable steps to mitigate the loss. |
| Payzu Ltd v Saunders | N/A | Yes | [1919] 2 KB 581 | N/A | Cited with approval for the principle that what constitutes reasonable steps to mitigate loss is dependent on the particular circumstances of each case. |
| PT Master Mandiri v Yamazaki Construction (S) Pte Ltd | N/A | Yes | [2001] 1 SLR 540 | Singapore | Cited for the principle that what constitutes reasonable steps to mitigate loss is dependent on the particular circumstances of each case. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Charterparty
- Mitigation of Loss
- Laycan
- Dead Freight
- Palm Oil
- Vessel Nomination
15.2 Keywords
- Charterparty
- Breach of Contract
- Mitigation
- Shipping
- Palm Oil
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Shipping | 90 |
| Admiralty and Maritime Law | 90 |
| Shipping Law | 80 |
| Charterparty Disputes | 75 |
| Breach of Contract | 70 |
| Mitigation of Loss | 65 |
| Contract Law | 60 |
| Voyage Charter | 55 |
| Damages | 50 |
16. Subjects
- Shipping
- Contract Law
- Admiralty
- Breach of Contract