Pacific Inter-Link Sdn Bhd v Shipowner (The “Asia Star”) – Singapore Court of Appeal, 19 Mar 2010

SEAWORTHINESS -- LOST PROFITS -- OBLIGATION TO MITIGATE DAMAGES -- Owner Award Owner breached the contract when ship was deemed unseaworthy. Court of Appeal ruled that when mitigating damages, the aggrieved party must take all reasonable steps in order to mitigate the loss caused by the breach. The aggrieved party cannot recover damages which resulted from its unreasonable action or inaction or which were avoidable, however, the aggrieved party need not greatly inconvenience itself or incur extraordinary expenses in order to mitigate losses. And, unless the communication is impractical, the aggrieved party should inform the defaulting party of the steps being taken to mitigate damages.