Overcoming unjustified claims: a recipe for a positive outcome

Overcoming unjustified claims: a recipe for a positive outcome

International transport is fraught with both opportunities and many challenges. Transport companies are increasingly faced with a growing number of cases and disputes that arise in the course of their work. In some cases, these disagreements reach court, where qualified expertise is crucial to achieving a positive outcome. In this article we focus on the importance of professional work in resolving disputes in the world of international transport.

 

The Facts

Our client, a carrier, was commissioned to transport goods from Bulgaria to France. At the unloading address it was found that the goods were damaged. This was also established by the entry of an appropriate remark in the CMR consignment note.

The challenges

The owner of the goods brought a claim in relation to the damaged goods directly before the court. This is generally unusual as claims for damage or shortages are brought out of court under the CMR Convention.

Our client received by post a notice from the French court before which the case was brought, of the scheduled hearing, and information about the claim. With surprise and a degree of concern, a representative of the transport company contacted us asking for assistance.

In a case such as this, great care must be taken, bearing in mind the jurisdiction of the court before which the case is pending and that the specifics of the applicable law must be taken into account.

Professional care and assistance

As experts in the field of transport law, we at Claims Trans have an extensive network of contacts of lawyers abroad with whom we work on a daily basis on various cases.

Without wasting time, we contacted our partner in France. The latter, after becoming acquainted with the case, immediately took the necessary steps to ensure that our client was properly represented in court in France.

Together with the lawyer, we discussed the main lines of defence open to us.

The claimant’s (the owner of the goods) claim was extremely high, including the cost of repairing the damaged goods, transport costs, operational loss, and legal costs.

The operating loss claimed by the plaintiff was a huge sum, which was not proven either in reason or in amount.

After a thorough discussion of the facts and the applicable law with the French lawyer, we concluded together that our client was only liable for the damage to the goods, but up to the limit of liability provided for in the CMR Convention.

As a next step, we considered that it would be best if an out-of-court settlement could be reached with the other party in order to bring the case to a swift and fair conclusion.

Our partner initiated serious negotiations with the opposing party and its legal representative, ultimately succeeding in its efforts, and the claimant agreed to be compensated up to the carrier’s limit of liability and to have the case dismissed and accordingly closed.

In the meantime, open court hearings were held and it took almost a year to reach a settlement, have it approved by the court and accordingly terminate the proceedings. Otherwise, if no agreement had been reached, perhaps the trial would have continued for another year.

Conclusions

In the end, thanks to our efforts and the professionalism of our partner, the value of the claim was reduced from nearly 90,000 EUR to 13,000 EUR. With the out-of-court settlement, the case was closed relatively quickly and entirely in the interest of our client. Justice prevailed once again and we were able to fight off the unjustified claim of the owner of the goods, which, had it been upheld by the court, could have proved disastrous for our client’s business.

 

Success in the field of transportation case management requires not only careful management, but also professional care and assistance. At Claims Trans, we provide expert claims assistance on a daily basis. Our commitment to clients and our ability to offer quick and effective solutions play a crucial role in achieving positive results that, in turn, fully satisfy our clients.

Unraveling Delay Damages: Claims Trans` Victory Over Gross Negligence in Logistics

Unraveling Delay Damages: Claims Trans` Victory Over Gross Negligence in Logistics

When a high-value shipment gets entangled in a web of deceit and delay, the situation may seem impossible to untangle. This was the predicament faced by a Bulgarian exporter of premium climbing walls when their logistics turned into a legal labyrinth. This case study explores how Claims Trans transformed what appeared to be an insurmountable challenge into a triumph of legal acumen and negotiation finesse.

 

The Challenge

Our client, an exporter, faced the daunting task of recovering substantial losses from a transport debacle involving multiple subcontractors and a mislaid trust in a major logistics company. With cargo held hostage, deadlines missed, and costs mounting, the scenario seemed bleak. The client’s hope for a favorable outcome was dim, as they braced for a substantial financial hit of 10,000 EUR due to additional travel, accommodation, and equipment rental costs.

At this point of escalation, Claims Trans stepped onto the scene.

 

The Art of Claiming Delay Damages

Under the shadow of Art. 23(5) of the CMR Convention, claiming damages for delay is notoriously challenging. This provision typically caps compensation at the carriage charge amount, a paltry sum compared to the potential losses faced by our client. However, Claims Trans refused to accept this limitation as the final word.

At Claims Trans, we knew the success of the legal statement hinged on the precision of our narrative and document preparation. This rigorous process was crucial, allowing us to immerse ourselves in the client’s world, fully comprehend the magnitude of the challenge, and effectively communicate the strategy and its chances of success.

Claims Trans’ Approach

Claims Trans, armed with a profound understanding of the CMR Convention, approached the case with a strategy anchored in leveraging Art. 29, a seldom-invoked and jurisprudentially scarce provision.

This article, a theoretical labyrinth rarely navigated with proficiency, often stands as a conundrum to insurers, logistics companies, and even seasoned lawyers. Its application is not just a matter of legal interpretation but requires a nuanced understanding that transcends theoretical knowledge into the realm of practical, actionable insight.

Our expertise allowed us to dissect the article, to extract a standard for triggering Art. 29 based on gross negligence, and to apply it with precision to the facts at hand. We translated the legal jargon into a language that resonated with the client’s commercial realities, outlining the possibilities and calculating the odds with them transparently.

This meticulous process did not merely shape our legal strategy; it shaped the narrative of the case, painting a clear and compelling picture of the logistics company’s glaring oversight and misconduct. Our narrative was fortified by a deep understanding of international legal precedents, which we leveraged to bolster our argument, making it not just persuasive but unassailable.

Navigating Negotiations

The Claims Trans team maintained an open line of constant communication, weighing each decision with precision and preparing diligently for negotiations. The lead claim analyst’s presence at meetings and the transparent appraisal of the logistics company’s stance provided the client with invaluable commercial insights. This strategic advisory role fortified our client’s trust, empowering them to make informed decisions throughout the process.

The Corporate Labyrinth

The pursuit of justice led us into the intricate hierarchy of the logistics behemoth, a multi-tiered structure designed to shield them from liability. Our team navigated this labyrinth with astute negotiation tactics, engaging with various levels of management and legal teams. This was not merely a test of legal knowledge but a battle of wits and endurance, where Claims Trans’ commitment to client advocacy shone brightest.

The Final Push

As the settlement discussions reached their zenith, Claims Trans’ legal acumen was put to the ultimate test against a seasoned lawyer from a major firm. Our specialized knowledge in transport law became the lever with which we pried the case in our favor, exposing the opposition’s lack of specialized knowledge and securing a significant settlement.

Successful Outcome

The persistence and expertise of Claims Trans culminated in a settlement that significantly exceeded the conventional limits of compensation for delay as dictated by the CMR Convention. The client, initially faced with seemingly insurmountable odds, received over 8500.00 EUR in compensation, effectively turning an “impossible” situation into a landmark victory.

 

Client’s Testimonial

High-value shipment gets delayed-Client testimonial

Conclusion

Through this case, Claims Trans has not only underscored its reputation as a preeminent transport law consultancy but has also set a new precedent in the application of Art. 29 of the CMR Convention. Our blend of legal mastery and commercial insight ensures that our clients’ interests are not just legally protected, but commercially vindicated, too. This case stands as a beacon of Claims Trans’ dedication to converting complex legal challenges into success stories.