Make Your Freight Claim Legally Valid

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(Identify limitations of liability applicable within each mode of transportation)

Liability shall be determined in accordance with the internal law of State and/or any International convention which is compulsorily applicable by the laws of such State.

Most Canadian provinces have enacted regulations detailing valuation and maximum liability.

In an attempt to encourage trade by easing the onerous liability of a common carrier, the provinces of Canada have enacted conditions of carriage, virtually uniform throughout all 10 provinces, which are meant to define the contract of carriage between a carrier and shipper or owner of goods. These “Uniform Conditions” are meant to be incorporated into the bill of lading, a document which identifies the parties and subject matter of the contract of carriage and evidences the terms of that contract.

The Uniform Conditions provide a number of protections to the carrier in the event of cargo damage. One of the most significant issues is a provision which allows the carrier to limit its liability to $2.00 per pound based on the weight of the cargo unless the shipper of the goods declares a different value (in which case the shipper will likely be charged a premium for the extra risk the carrier is assuming). Also in the Uniform Conditions are notice provisions which may have the effect of extinguishing a cargo owner’s claim if no notice is given during the notice period. There is also a provision to protect the carrier in the event that he is given cargo of extraordinary value and the extraordinary nature of the cargo is not disclosed or apparent on loading.

The Uniform Conditions in each province are in force by virtue of each province’s motor carrier legislation, and regulations under that legislation. The Federal Government of Canada has delegated to the provinces the right to regulate extra-provincial truck undertakings as if they were local undertakings pursuant to the Motor Vehicle Transport Act, S.C. 1987, c. 35. The result of the provincial regulation is that each province has its own motor carrier transport legislation which have subtle differences. The regulations in each province set out the Uniform Conditions, calling them by slightly different names in some cases.

The way in which the regulations make the Uniform Conditions part of the contract of carriage becomes significant as it varies from province to province. The regulations generally require that the Uniform Conditions be incorporated or contained in the bills of lading issued by carriers at the time of pick up.

REFERENCE TO GENERAL FREIGHT UNIFORM CONDITIONS OF CARRIAGE:

- Liability of Carrier

The carrier of the goods described in this contract is liable for any loss of or damage to goods accepted by the carrier or the carrier’s agent except as provided in this Schedule.

- Liability of Originating and Delivering Carriers

Where a shipment is accepted for carriage by more than one carrier, the originating carrier and the carrier who assumes responsibility for delivery to the consignee (called the delivering carrier in this Schedule), in addition to any other liability under this Schedule, are liable for any loss of or damage to the goods while they are in the custody of any other carrier to whom the goods are delivered and from which liability the other carrier is not relieved.

- Recovery from Connecting Carriers

I. The originating carrier or the delivering carrier, as the case may be, is entitled to recover from any other carrier to whom the goods are delivered the amount that the originating carrier or delivering carrier, as the case may be, is required to pay for the loss of or damage to the goods while they were in the custody of such other carrier.

II. If there is a concealed damage settlement and the goods were interlined between carriers so that it is not clear as to who had custody of the goods when they were damaged, the originating carrier or delivering carrier, as the case may be, is entitled to recover from each of the connecting carriers an amount prorated on the basis of each carrier’s revenue for carriage of the damaged goods.

- Remedy by Consignor or Consignee

Nothing in Article 2 or 3 deprives a consignor or consignee of any rights the consignor or consignee may have against any carrier.

5. Exceptions from Liability

The carrier shall not be liable for loss, damage or delay to any of the goods described in the contract of carriage caused by an act of God, the Queen’s or public enemies, riots, strikes, a defect or inherent vice in the goods, an act or default of the consignor, owner or consignee, authority of law, quarantine or difference in weights of grain, seed or other commodities caused by natural shrinkage.

6. Delay

No carrier is bound to carry goods by any particular public truck or in time for any particular market or otherwise than with due dispatch, unless by agreement that is specifically endorsed in the contract of carriage and signed by the parties.

7. Routing by Carrier

If the carrier forwards the goods by a conveyance that is not a public truck, the liability of the carrier is the same as though the entire carriage were by public truck.

8. Stoppage in Transit

If goods are stopped and held in transit at the request of the party entitled to so request, the goods are held at the risk of that party.

9. Valuation

Subject to Article 10, the amount of any loss or damage for which the carrier is liable, whether or not the loss or damage results from negligence, shall be the lesser of,

- the value of the goods at the place and time of shipment, including the freight and other charges if paid, and

- II. $4.41 per kilogram computed on the total weight of the shipment.

10. Declared Value

If the consignor has declared a value of the goods on the face of the contract of carriage, the amount of any loss or damage for which the carrier is liable shall not exceed the declared value.

11. Consignor’s Risk

I. If it is agreed