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Appeal from the United States District Court for the Eastern District of Louisiana

Defendant AHL Shipping Company (“AHL”) contaminated a portion of the oil cargo it transported for plaintiff BP North American Petroleum (“BP”) while discharging the fuel from its vessel, the S/T SOLAR. Following a bench trial, a damage award was ordered in favor of BP. BP appeals the amount of the award. It argues that, in ordering a modified “expected profit” award, the district court employed an improper formula in calculating damages. We agree and hold that the traditional measure of damages in damaged goods cases–the “market value” measure–should have been applied in this case. Because this formula was not utilized, we REMAND the case to the district court for a determination of damages using an estimated market value of the damaged oil on the discharge date.

I.

 
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