 Mercator argued Transfield should pay the amount they had lost on the new chartering contract because of the late return, which adding up the cost over the months would be $1,364,584.37.The arbitrators of the case, by a majority, decided in favour of Mercator.They held that the loss from getting a lower price on the next chartering contract was within the first rule in "Hadley v Baxendale" as arising "naturally, i.e.