Opinion ID: 197477
Heading Depth: 3
Heading Rank: 2

Heading: Comet

Text: 84 Defendants challenge six of the thirteen components of the $100,312.13 award to Comet. 23 They claim (1) that Comet should not have been awarded the stevedoring fees ($4,500) and ship's agency fees ($4,999.26) incurred at the port of origin, Miami, because Comet would have incurred these expenses even if the charter had not been breached; (2) that the award of fuel costs for both the M/V VASILIA EXPRESS ($5,312) and the replacement vessel secured by Comet ($7,326) was duplicative; and (3) that the award of the entire cost of the substitute vessel ($15,000), along with the reimbursement of the M/V VASILIA EXPRESS charter hire ($39,450), was likewise duplicative. Defendants also argue that the district court failed to account for the fact that cargo problems were part of the reason why the U.S. Coast Guard initially detained the M/V VASILIA EXPRESS in Puerto Rico, which, along with the arrest by Navieros, led to the vessel's inability to carry Comet's cargo. 85 The final point borders on frivolous, in light of the numerous vessel-related and captain-related deficiencies cited by the Coast Guard. See footnote 4 supra. But the first three claims have considerable merit. 86 The damages award included reimbursement for the stevedoring costs associated with transferring the cargo from the M/V VASILIA EXPRESS to the replacement vessel. In light of this, the award of costs for the original loading of the M/V VASILIA EXPRESS was inappropriate. The award of the stevedoring costs at the port of origin ($4,500) is thus vacated. Comet did not make a claim for reimbursement for any shipping agency fee for the replacement vessel, so there was no double dipping there. But that is also why the fee paid by Comet at the port of origin ($4,999.26) is not recoverable: Comet apparently incurred no additional shipping agency costs as a result of the breach. That award too is vacated. 87 There was excessive recovery for the fuel costs too. Comet should pay only for the fuel used by the M/V VASILIA EXPRESS on the initial Miami-San Juan run, which was completed before the breach, but not for the additional fuel, if any, that it deposited in that vessel's gas tanks in Miami in expectation of the continuation of the voyage to Venezuela. Comet is also entitled to differential money damages; that is, it should be reimbursed for that portion of the fuel purchased for the replacement vessel that was in excess of the expected cost of fuel for the M/V VASILIA EXPRESS, had the latter ship fulfilled its contractual obligations. These are calculations that are necessarily based on estimates and expectations. The record indicates that the replacement vessel consumed more fuel than the M/V VASILIA EXPRESS, but we are unable to glean precise details about this or about whether the M/V VASILIA EXPRESS was left with any Comet-purchased fuel when detained and arrested in the Port of San Juan, and if so, how much. We thus vacate the two fuel cost awards ($5,312 & $7,326) and remand to the district court for an amended award in light of this discussion. 88 Comet was awarded excessive damages for charter hire too. Comet is entitled to differential damages. Where the substitute vessel costs less than the one originally chartered, the charterer is entitled to a refund of the price paid for the original, but it should pay for the substitute. If the replacement costs more, the charterer should get reimbursed for this difference in cost. It is difficult to imagine a situation where the charterer would be entitled to a refund of the original charter hire and an award of replacement costs. Here, Comet's replacement vessel ($15,000) cost less than the M/V VASILIA EXPRESS ($39,450). Comet therefore is entitled to a refund of the M/V VASILIA EXPRESS charter hire, but not to an award of costs for the hire of the replacement. The $15,000 award is thus vacated.