Tips When Goods Are Damaged or Lost During Transport

Nine things you need to know about claims resulting from transport by truck, as established by the applicable laws and cases. These tips could be helpful whether you are making a claim or defending against one.

1. The contract of transport binds the parties and constitutes the law which governs them. It is known as a “Bill of Lading” or under the abbreviation “BOL”, also known as a “connaissement” in French. It includes the names of the sender, recipient and carrier, the location and date of the pick-up, points of origin and destination, and a description of the goods, including the quantity, volume or weight.
2. The carrier has an obligation to transport the property to its destination. It is an obligation of result, from which it can only be released by proving that the damage was caused by a fortuitous event or the inherent defect of the goods.
3. When a trucking company subcontracts a leg of the transportation to another trucking company, the two companies are jointly and severally liable if a loss occurs: each of them is 100% responsible for the loss and the shipper can file a claim with either or both for the entire amount of the claim.
4. All claims are subject to an advance written notice to be given to the carrier. This notice must be sent within 60 days from the date of delivery, whether the loss to the property is apparent or not, or nine months from the date of shipment if the property has not reached its destination. Failure to give this notice constitutes a bar for making a claim.
5. Provided a notice has been duly forwarded to the carrier within the prescribed time frame, a claim is subject to a three-year prescription period from the date the property was or should have been delivered.
6. If the value of the goods transported is declared on the bill of lading, this value will be the limit of the trucking company’s liability, not only for the damage to the goods, but also for all other consequential damages.
7. In the absence of a declared value on the bill of lading, the liability of the trucking company is limited to $4.41 per kilo according to a pre-printed clause appearing in most bills of lading.
8. If liability is limited to $4.41 per kilo, in virtue of such a clause the limit will be set by taking into consideration the total weight of the shipment, even if the loss is only partial. This value represents the trucking company’s maximum liability for all damage, including consequential damages.
9. A trucking company is not liable for the loss of high-value goods if it carries these goods without knowing their value.

The above are general recommendations. Many factors, such as the mode of transportation or a foreign origin or destination could dictate the application of different rules. Do not hesitate to contact one of our team members for more information.