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.

Case Unveiled: Battling Withheld Deductions of Freight Invoices

Case Unveiled: Battling Withheld Deductions of Freight Invoices

withheld deducted freights

In a riveting legal battle, Clams Trans emerged victorious by securing justice for a client facing unjustified withheld deducted freights. This milestone case sheds light on the critical role we play in advocating for our clients’ rights in the realm of logistics and transportation.

Check out our recent post and article on the topic of unpaid freights: Reclaim Your Profits: The Ultimate Solution for Recovering Unpaid Freights in the Transport Industry

The Challenge: Pursuing Resolution

When our client’s cargo suffered damages during transit from Uzbekistan to North Macedonia, a contractor unilaterally deducted a sum for damages. Armed with unclear documentation, the contractor’s actions were unjustifiable. Despite our efforts to seek an extrajudicial solution, the claimant remained unresponsive.

Legal Landscape: CMR Convention’s Significance 📜

Navigating the intricacies of international transport claims required us to lean on the CMR Convention’s tenets. Article 17, Paragraph 4, addresses exceptional risks that could limit carrier liability, while Article 18, Paragraph 2, mandates claimants to establish non-attribution to these risks.

Strategic Pursuit of Justice: Litigation in Belarus 🛤️

Undeterred by obstacles, we initiated legal proceedings in Belarus, the jurisdiction of the claimant. While challenges arose – from obstruction tactics to fabricated documents – we remained steadfast in our pursuit of justice.

Courtroom Triumph: A Defining Moment 

During a pivotal court session, the defendant presented an annex to the transport order, asserting the right to offset during trials. However, the court uncovered the consignee’s orchestrated scheme involving a forged signature – a revelation that turned the tables in our favor.

Verdict: Restitution and Beyond 👨‍⚖️

The Belarusian court’s ruling was a testament to justice prevailing. The withheld sum was ordered to be restored, accompanied by interest from the decision’s legal enforcement until payment. Armed with the court’s binding decision, we are prepared to take necessary steps, if required, to ensure our client’s rights are upheld.

Continued Progress: Enforcing Justice ⚖️

Our commitment doesn’t end with the verdict. We’ve successfully initiated the procedure for enforcing the legal decision before a Bailiff in Belarus, reinforcing our dedication to justice.

Industry Impact: A New Precedent

This triumph sets a remarkable precedent in the transportation sector. It serves as a stark reminder that substantiating claims with irrefutable evidence is paramount, and unfounded claims are unlawful – a message the court’s decision reinforces.

Championing Rights: A Collective Endeavor

While our partner’s unwavering dedication contributed significantly to this achievement, we recognize that this victory is a result of collective teamwork and expertise. This success resonates not just for our client but for all carriers and freight forwarders confronting analogous challenges.

In Conclusion: A Resounding Victory 🏁

Our victory in the courtroom echoes our dedication to championing the rights of carriers and freight forwarders globally. This triumph emboldens us to continue advocating for justice, not only within familiar jurisdictions but also in foreign courts.

 

Does transport mediation deliver solutions tailored to the dynamics of the logistics industry?

Does transport mediation deliver solutions tailored to the dynamics of the logistics industry?

transport mediation

The dynamics of the logistics industry create serious challenges for carriers, freight forwarders and customers. Problematic situations arise on a daily basis. Losing control of a problem while it is still in its infancy makes solving it much more difficult.

How can logistics companies can benefit from mediation?

The logistics industry needs a mechanism to match its dynamics, namely an adaptable, dynamic, flexible and fast model through which disputes can be resolved efficiently. The mediation procedure is the means that would perfectly incorporate into the transport industry to help it continue to develop at a rapid pace.

Mediation is an alternative means of resolving disputes. It is precisely an alternative because it is an option that the parties have and the choice of which depends solely on their will. By agreeing to a mediation procedure with the assistance of a mediator, the parties aim to reach a mutually beneficial solution and agreement between them. Of course, the parties to a pending dispute may also proceed to mediation at any time and reach an agreement only with the mediator’s proper communication guidelines.

The mediation procedure is distinguished by certain principles which most clearly describe its nature, namely: voluntariness, equality, neutrality, impartiality and confidentiality. In view of these basic principles, the disputants have equal opportunities in the mediation procedure. They participate of their own free will and may withdraw at any time. It is also extremely important that the mediator does not show partiality and does not impose a solution on the dispute. In the mediation procedure, all issues are settled only by mutual agreement of the parties.

In order to gain a better insight into the nature of mediation, we should distinguish mediation from court and arbitration proceedings. While in the latter two proceedings the decision is made by a judge or arbitrator on the basis of the applicable law, in mediation the parties themselves resolve the dispute with the help of the mediator on the basis of their personal needs or business interests. Another important difference should not be overlooked, namely that court and arbitration proceedings follow a strictly formal procedure laid down in law or rules, whereas in mediation there is an informal and flexible procedure which is modelled and individualised according to the needs of the parties and the type of dispute respectively.

The advantages offered by the mediation procedure are significant in number and can be structured as follows:

1.Speed of outcome – this is one of the main advantages of mediation compared to court proceedings in particular. The parties can usually reach a mutually beneficial solution within 1-2 sessions, which would not take more than a month. Conversely, if the dispute is taken to court, it can take a considerable period of time to consider and resolve.

2.Lower financial cost – resolving the dispute in mediation would cost much less financially than court proceedings;

3.Convenience – no formal procedures;

4.Control – the parties have overall control over the development of the procedure;

5.High success rate and getting to the heart of the problem;

6.Preservation of alternative options – referring the dispute to a mediator does not deprive the parties of the possibility, if they fail to reach an agreement, to seek protection of their rights and interests in court or in arbitration;

7.Preservation of relations – resolving the dispute in mediation allows the parties to preserve good relations and continue their cooperation;

Most likely, after clarifying the nature of mediation, the question arises: How can mediation work in transport? The answer is clear – mediation is widely applicable in the transport sector as it would help to resolve the conflicts that inevitably arise on a daily basis. In view of the dynamics of the transport industry, mediation is the means by which disputes arising can be resolved in a quick, efficient and above all cost-effective manner.

Furthermore, business relations in transport are very important and as such should be preserved for the future. A mediator would help the two disputing parties to confront the problem, generate as many solutions as possible in the interests of the parties, find the balance in the demands of both parties so that they can reach a mutually beneficial solution and continue to cooperate with each other, rather than worsen their relationship as happens most often in litigation.

And what is the value for companies? Mediation gives a lot – companies reach quick and efficient solutions in line with their direct business interests – a very important circumstance in view of the dynamics in the transport industry. Mediation saves a lot of costs – a definite plus in view of the difficult economic situation we are in. Last but not least, mediation helps the parties to maintain good relations with each other and to continue working together – this fact also has a positive impact on the economic situation of the companies.

Mediation is best suited to the dynamics of the logistics industry. The latter requires quick, effective and forward-looking solutions, and mediation is able to help the parties themselves reach precisely such solutions.