Parcel - August 2008 - (Page 9) unless the shipment is “practically worthless” or “totally worthless.” The collateral consequences of a wrongful rejection could be that neither the consignor nor consignee could recover from the carrier for a loss and damage claim. For instance, a carrier may have disposed of the goods before an adequate inspection could be made. Problems can also arise when allegedly damaged goods are returned via a different routing or carrier, and it cannot be verified whether the damage occurred on the outbound or on the return trip. Such rejections could also lead to a claim by the consignor against the consignee for breach of contract, for example, if the purchase order or other sales document contained certain procedures which the consignee failed to follow. Not all of the problems in transportation are the fault of the carriers. The issues outlined here are truly the “tip of the iceberg.” If any of the circumstances or examples discussed here or in the last issue relate to your company, immediate steps should be initiated to ensure compliance with legal and contractual requirements and to minimize potential liability. All for now! Brent Wm. Primus, J.D., currently serves as the General Counsel for the Freight Transportation Consultants Association and is the CEO of transportlawtexts, inc. as well as Primus Law Office, P.A. Your questions are always welcome at brent@transportlawtexts.com. Conclusion The terms of sale will determine who has the responsibility for payment of the freight charges and which party bears the risk of loss or damage to the goods when in transit. Liability for Personal Injury and Wrongful Death There are various circumstances that could give rise to a lawsuit by a third party against a shipper for injury or death. In the past, there have been many cases involving an allegation of improper loading of the cargo causing an accident and, in particular, situations where the consignor, as opposed to the carrier, takes total responsibility for loading a trailer full of packages to be picked up by the carrier. When a consignee dock worker, carrier driver or the occupants of a passenger vehicle on a highway are subsequently injured, the consignor can be held liable if it is determined that the consignor did indeed improperly load the trailer. Another type of liability for a consignor or consignee is “vicarious liability” when a truck is involved in a highway accident. Generally speaking, these concerns relate more to entities hiring truckload carriers as opposed to a “major” package carrier or LTL carrier. An example of such a case is Schram v. Foster, where the judge held that C.H. Robinson, a major broker, could be held liable if the jury found that it had been negligent in selecting the carrier. http://www.intravex.com http://www.intravex.com
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