Seabridge Shipping Ltd. v. Ceylon Petroleum Corporation – sllr 2002 volume 1 page 126

In the case between Seabridge Shipping Ltd (plaintiff-appellant) and Ceylon Petroleum Corporation (defendant-respondent), the court addressed the issue of damages arising from the breach of an affreightment contract relating to the transportation of crude oil. The core question was whether compensation for loss of reputation or loss of profit should be awarded, and the sufficiency of the evidence supporting the claimed damages. It was held that the evidence presented did not substantiate a substantial award for loss of profit and that only nominal damages for loss of reputation were supported. The established principle reaffirmed the necessity for clear proof of loss and the correct computation of damages in contract breaches. Reliance was placed on the examination of contractual documents