Our law firm has secured a landmark victory in a complex legal dispute concerning unpaid demurrage fees, on behalf of its international freight-forwarder Clients. The case, which involved critical aspects of international sale of goods, multimodal transport, and the often contentious issue of demurrage, has now reached a definitive conclusion. The Court of Appeal has upheld the initial ruling, making the judgment final and binding.
The case revolved around cargo sellers who exported frozen meat products to the Middle East but failed to properly arrange for the collection of the goods by the consignee (buyers) at the designated port. This failure resulted in the freight-forwarders incurring substantial demurrage fees due to the extended storage of containers at the port, while the cargo was awaiting proper collection.
The case involved a number of complex legal issues, including the intersection of international sale of goods and multimodal transport. While the sellers initially expressed their willingness to comply with the contract terms, they later refused to pay the demurrage fees resulting from the delays. The sellers also argued that the containers had been shipped to the wrong port, but our Team successfully challenged this defence in court.
Through detailed investigation and expert testimony, our legal Team proved that the terminal to which the containers were sent indeed fell within the description of the port nominated by the sellers. The Court ruled that the sellers’ argument regarding the wrong port was without merit. Additionally, the sellers claimed that the cargo had been damaged during sea transit, which, if proven, would have strongly imply our Clients’ liability. According to Polish law, freight-forwarders must disprove responsibility for damage if the claimant can show that the loss occurred during transport they arranged – this usually boils down to freight-forwarders having to conclusively prove utmost diligence in selecting the carrier.
However, our Team successfully demonstrated that no conclusive evidence existed to support the claim that the cargo was damaged during sea transit. Expert testimony indicated that the damage most likely occurred during the last leg of the return transport, which had been arranged by the sellers. The Court found the sellers’ claim of damage to be unsubstantiated and ruled in favor of the freight-forwarders, confirming the sellers’ liability for the unpaid demurrage fees.
The Court of Appeal has recently upheld the initial decision, making the ruling final and binding. This victory serves as a significant achievement for our firm and a crucial precedent for the freight-forwarding industry.
If you have questions regarding this or similar matters, feel free to contact our Team at rgco@rgcolegal.com
