U.S. Supreme Court
The Atlanten, 252 U.S. 313 (1920)
Argued March 10, 1920
Decided March 22, 1920
252 U.S. 313
A charter party provided that, should any dispute arise, it should be settled by referees, to be appointed by the captain and the charterers respectively, whose decision, or that of an umpire, should be final, and that any party attempting to revoke such submission to arbitration without permission of court should be liable to pay the estimated freight as liquidated damages. Held that this could not be construed to apply where there was not merely a dispute in carrying out the contract, but a substantial repudiation of it, by the shipowner's declining to go on with the voyage unless the freight rate were increased. P. 252 U. S. 315.
A clause in a charter party: "Penalty for nonperformance of this agreement to be proved damages, not exceeding estimated amount of freight," held inapplicable where the shipowner substantially chanroblesvirtualawlibrary
repudiated the contract by refusing to go on with the voyage. P. 252 U. S. 316.
Such a clause provides a penalty, and leaves the ordinary liability upon the undertakings of the contract unchanged. Id.
Presumption that, in such a matter, the rule on the continent of Europe is the same as in England and the United States. Id.
250 F.9d 5 affirmed.
The case is stated in the opinion.