De Mattos v Gibson

JurisdictionEngland & Wales
Judgment Date07 June 1860
Date07 June 1860
CourtHigh Court of Chancery

English Reports Citation: 70 E.R. 669

HIGH COURT OF CHANCERY

De Mattos
and
Gibson

S. C. 30 L. J. Ch. 145; 3 L. T. 121; 7 Jur. (N. S.) 282. For previous proceedings, see 28 L. J. Ch. 165; 5 Jur. (N. S.) 347; 7 W. R. 152.

Ship. Mortgage. Right to use the Ship. Merchant Shipping Act. Injunction. Detention. Measure of Damages.

[79] de mattos v. gibson. June 6, 7, 1860. [S. C. 30 L. J. Ch. 145; 3 L. T. 121 ; 7 Jur. (N. S.) 282. For previous proceedings, see 28 L. J. Ch. 165; 5 Jur. (N. S.) 347; 7 W. R. 152.] Ship. Mortgagee. Plight to use the Ship. Merchant Shipping Act. Injunction. Detention. Measure of Damages. Semble, the mortgagee of a ship is entitled to take possession and sail her, and upon doing so becomes an owner within the meaning of the Merchant Shipping Act, 17 & 18 Viet. c. 104, and subject to all the liabilities consequent thereon. 670 DB MATTOS V. GIBSON 1 J. & H. 80. Where, on granting an injunction against the use of a ship by the owner, an undertaking for damages is given, the measure of damages would include the loss of profit by the detention of the ship. But where the injunction was against a mortgagee of a ship, which was an insufficient security, who had declared his intention to sell, and had not suggested the loss of possible profit as part of the damage anticipated : Held, that the loss of such profit was too speculative to be taken into account;, and that the measure of damage was the expense involved in the custody of the ship and the deterioration which she had suffered, together with interest in the meantime. The Defendant, Curry, was owner of a ship called the Allerton, and the Defendant, Gibson, was mortgagee thereof, with power of sale. Before the mortgage Curry had chartered the ship to the Plaintiff for a voyage to Suez, and the Plaintiff alleged that Gibson had notice of the charter-party, and in fact received the benefit of moneys paid by the Plaintiff in respect of it. The ship sailed under the charter-party, and put back for repairs; and Gibson threatened to sell her. The Plaintiff filed the bill for specific performance of the charter-party, and for an injunction to restrain the threatened sale, the Defendant stating by his answer that he did intend to sell the vessel without reference to the charter-party, and had, with that view, sent instructions for her removal to Newcastle, and not suggesting any intention to charter the vessel, or any probability of damage from being restrained from doing so. On the 17th of December 1858 Plaintiff obtained from the Lords Justices an injunction restraining the Defendant, Gibson, from removing the Allerton to Newcastle, or otherwise interfering to interrupt her voyage to Suez; the [80] Plaintiff undertaking to abide by any order as to damages that might be occasioned to the Defendant by the injunction. On the 20th of April 1859 a decree was made dismissing the bill; but the order was stayed pending an appeal, the undertaking as to damages being continued. On the 27th of May 1859 the Lord Chancellor affirmed the order of the 20th of April 1859; and, notwithstanding the order of the 17th of December 1858, referred it to the Judge to whose Court the cause was attached to deal with the undertakings as to damages in the said order contained. An inquiry as to damages was then prosecuted; and, on the 30th of April 1860, the Chief Clerk certified that £375, 8s. was the amount of damage. This result was arrived at on evidence that, on the 3d...

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28 cases
  • MacJordan Construction Ltd v Brookmount Erostin Ltd
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 23 October 1991
    ...... notice of contractual rights would be held to bind persons who acquired interests in property affected by those contractual rights: see de Mattos v GibsonENR ((1858) 4 de G & J 276) which was examined by Mr Justice Browne-Wilkinson in Swiss Bank Corporation v Lloyds Bank LtdELR ([1979] Ch 548, ......
  • Lord Strathcona Steamship Company Ltd v Dominion Coal Company Ltd
    • United Kingdom
    • Privy Council
    • 17 November 1925
    ...Blanesburgh Lord Strathcona Steamship Company Limited v. Dominion Coal Company Limited De Mattos v. GibsonENR 33 L. T. Rep. (O. S.) 193 4 De G. & J. 276 Tulk v. MoxhayENR 2 Ph. 774 Keppell v. BayleyENR 2 My. & K., p. 547 London and South-Western Railway Company v. Gomm 45 L. T. Rep. 505 20 ......
  • Moylist Construction Ltd v Doheny and Others
    • Ireland
    • High Court
    • 21 April 2010
    ...COMPANIES 1ED 1986 81 MACJORDAN CONSTRUCTION LTD v BROOKMOUNT EROSTIN LTD 1992 BCLC 350 1994 CLC 581 DE MATTOS v GIBSON 1859 4 DE G & J 276 45 ER 108 SWISS BANK CORP v LLOYDS BANK LTD & ORS 1979 CH 548 1979 3 WLR 201 1979 2 AER 853 LIGHTMAN & MOSS THE LAW OF RECEIVERS & ADMINISTRATORS OF CO......
  • Law Debenture Trust Corporation v Ural Caspian Oil Corporation Ltd
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 9 March 1994
    ...Agreements by Overseas, they took the shares subject to an obligation to perform the covenants therein, either under the principle of De Mattos v Gibson (1858) 4 De G. & J. 276, 282, or under the principle that he who takes the benefit of a transaction must also take the burden; (2)that as ......
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