Overcoming unjustified claims: a recipe for a positive outcome

Overcoming unjustified claims: a recipe for a positive outcome

by | Nov 29, 2023 | Case Studies

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.

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Another Successfully Resolved Case of Total Goods Damage Due to a Road Incident

Another Successfully Resolved Case of Total Goods Damage Due to a Road Incident

by | Oct 30, 2023 | Case Studies

In the dynamic transport industry, incidents leading to total goods damage due to road accidents are not uncommon. These occurrences pose significant challenges for carriers and all parties involved, relying on seamless cargo delivery. However, with timely intervention, effective management, and expertise in transport law, successfully resolving such cases becomes possible.

Facts

Our client, a carrier, was tasked with transporting goods to Germany. During the transport, a road incident occurred due to a burst tire, resulting in the overturning of the composition, hitting the roadside barriers, and shifting into oncoming traffic. A severe incident, fortunately leaving the driver unharmed.

Challenges

Road incidents of this nature are highly dangerous, both for the driver and other road users. Timely arrival of the police at the accident site was crucial, leading to the drafting of a police report. This report was of significant importance in processing the claim by the insurers. Simultaneously, the composition with the scattered goods blocked the busy highway. It was imperative to promptly organize the clearing of the roadway and the removal of the composition and goods to the nearest parking lot by an assisting company. Another challenge emerged in the destruction of the damaged goods. As it was a food product, the goods had to be disposed of as quickly as possible, following certain standards, resulting in additional significant expenses.

Navigating the Process

We promptly informed the carrier’s insurer about the insurance event and requested immediate guidance. The insurer confirmed that engaging an surveyor in this case was unnecessary as the goods were entirely damaged – a total loss.

Quick Actions Lead to Results

Upon submitting all the necessary documents to the carrier’s insurer and maintaining active communication, the insurer provided a positive response, and the full value of the damaged goods was paid to the claimant. Moreover, the expenses incurred by the carrier in clearing the goods from the roadway and their destruction were fully reimbursed by the insurer.

Conclusions

The significant incident posed a challenge for both the carrier and the cargo owner. The carrier took responsibility, adhering to the standards and obligations outlined in the CMR Convention, which was crucial for the successful resolution of the case. It’s essential to note that thanks to rapid and effective communication and collaboration among all involved parties, the insurer completely satisfied the cargo owner’s claim, providing full compensation for the incurred losses. This successful outcome highlights the importance of a professional approach and the ability to act quickly and effectively when unexpected incidents occur during international cargo transport.

Our experts understand the importance of handling incidents and insurance claims. With our extensive experience and a team of transport and insurance law professionals, we are at your service to provide our expertise and commitment to resolving similar situations. Rest assured, with us, your interests and rights will be fully protected, and the process of settling insurance claims will be conducted efficiently and with special attention to details.

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Navigating the Unexpected: How Claims Trans Overcame a Challenging Cargo Incident

Navigating the Unexpected: How Claims Trans Overcame a Challenging Cargo Incident

by | Sep 20, 2023 | Case Studies

Road accidents happen, and no one is insured against being involved in one. Often in the transportation industry, drivers are faced with circumstances that are beyond their control, and the consequences for the goods being transported can be fatal. Some of the most common factors that predispose to a road accident include road conditions, the reactions of other road users, speed, the dimensions of the truck, and the specifics of the cargo being transported. At Clams Trans, we have successfully resolved just such a case, where the entire cargo perished during a road accident.

The Facts

Our client is a freight forwarding company that was contracted to transport goods from Bulgaria to Sweden. They, in turn, subcontracted the transport to a carrier. The cargo being transported is wine weighing 24 tonnes with a significant material value. Due to the driver’s inappropriate speed, the lorry entered oncoming traffic, crashed into another lorry, overturned, and went off the road.

The Challenges

As a result of the accident, all the wine leaked out, and the driver of the other truck had minor injuries. The event took place in Romania, and the police immediately arrived at the scene to secure the area and retrieve the crashed truck. Already at this stage, the transporter is obliged to notify the assigning party, and so until information reaches the owners of the goods. In the present case, we have a total loss of goods, but in other circumstances where the damage is partial, it is important to recall that under the applicable CMR Convention Article 14(1), if for any reason it is impossible to carry out the transport before the goods reach the place designated for delivery, the carrier must request instructions from the person entitled to dispose of the goods.

Actions

The CMR carrier’s liability insurer was informed immediately of the incident. We investigated the need to appoint an surveyor, but in view of the fact that the damage was total, the insurer considered that there was no need to engage a surveyor. The driver was taken to the police to give his statement and subsequently to obtain an official police report, which is a compulsory document for any insurer under the “Carrier’s Liability” CMR when the event is a road traffic accident or theft.

Rules

In the event of road accidents where the cargo is totally damaged, it is important to collect all evidential documents to be provided to the insurer for their opinion. Often, when the action takes place in another state, obtaining an official police report can be a major challenge and lead to greater tension with the parties involved. At times like this, it is important to put clients at ease and make regular checks with the police regarding the issuance of the report that specifies the cause/party at fault for the crash.

Results

After providing all the necessary documents to the carrier’s CMR liability insurer, another hurdle ensued which delayed the insurer’s ruling. As mentioned at the outset, the driver of the other truck was slightly injured in the crash, so a pre-trial proceeding was initiated against the at-fault driver (our client’s subcontractor). In this case, however, the insurance cover applied to the liability of the carrier for the damage to the cargo during carriage, which was, in fact, the case. Therefore, the tort lawsuit filed was not relevant to this liability. After active communication with the insurer, it confirmed payment of compensation for the full value of the totally damaged (lost) goods.

Conclusions🏁

Although road traffic accidents can lead to great uncertainty, and the resolution of resulting claims can sometimes take considerable time, there are specific mechanisms to speed up the process of obtaining and providing the necessary information. This helps to dramatically improve the situation and reduce the time taken to resolve the issue.

When all parties concerned are informed in a timely manner of the development of the case, when the carrier fulfills its obligation to notify its insurer under the carrier’s liability insurance CMR immediately after the insured event, and when the responsible law enforcement authorities quickly and correctly draw up a document of the event, then all that is necessary is to control the process and apply the legal framework.

At Clams Trans, we rely on our extensive experience in handling claims of this nature and insist that our clients receive effective and legally sound advice to resolve their cases. We value the human aspect highly and always try to preserve the commercial relationship between the participants in the supply chain. We also do not allow escalated tensions to affect our professional judgment because we believe that success comes when you are consistent, responsible, and precise in your work.  

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Case Unveiled: Battling Withheld Deductions of Freight Invoices

Case Unveiled: Battling Withheld Deductions of Freight Invoices

by | Aug 24, 2023 | Case Studies

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.

 

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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?

by | Jan 25, 2023 | Articles

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.

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