《Air cargo claims》

CHAPTER 1—INTRODUCTION1

About this work1

The work which has to be done1

The breadth of the industry2

The integrity and stature of the work4

Exporters and importers5

Forwarders (and consolidators)5

Airlines6

CHAPTER 2—THE CONCEPT OF LIABILITY7

CHAPTER 3—ABOUT INSURANCE9

Insurance9

Insureds9

Insurance brokers10

Insurers10

Underwriting10

Claims adjusters11

Types of insurance11

Liability cover11

Transit or cargo cover12

What happens after claims settlements?12

Air waybill insurance12

CHAPTER 4—RISK AND LOSS CONTROL15

General risk control measures16

Loss16

Theft of entire packages or complete consignments:16

Packaging17

Description17

Shipping arrangements18

Pilferage18

Mis-routeing19

Damage19

Wetting20

Physical deformation20

Delays20

Loss control measures21

Cargo owners21

Mitigation21

Claim notices22

Carriers and forwarders22

Documenting incidents22

Loss23

Tallying23

Insurers23

Missing on receipt24

From another party24

From another depot in the same company24

From the inbound aircraft24

Missing during bond-check25

Missing on picking-out25

Damage26

Cameras26

Damage reports26

Insurers26

Damage on receipt27

From another party27

From another depot in the same company27

From the inbound aircraft27

Damage noted at other times28

Delay28

Perishables28

Theft29

Pilferage29

Whole packages or consignments30

The police and insurance investigators30

The police30

Insurance investigators31

Liability insurers31

CHAPTER 5—CREATING AND ADMINISTERING THE CLAIM FILE33

General principles33

Assumption of future litigation33

General construction of the file34

File creation34

A separate file and filing location34

Claim number34

Housekeeping35

Chronology35

Duplicated documents35

Clarity of documents35

Which records to maintain36

Regular documents36

Other documents39

Ordinary39

Special40

Reviewing and progressing40

Diary v. Database41

Database spin-off41

Correspondence standards41

CHAPTER 6—LEGAL FRAMEWORK43

Contract43

Liability in bailment and transit44

Bailment44

Transit44

The fundamental importance of incorporation45

Agency46

Evolution of Limited Liability46

Regulation of Contracts47

Civil regulation47

Regulation by legislation48

CHAPTER 7—CIVIL REGULATION—RHA AND BIFA49

RHA49

Condition 1—definitions49

Condition 2—parties and sub-contracting49

Condition 3—dangerous goods50

Condition 4—loading and unloading50

Condition 5—consignment notes50

Condition 6—transit50

Condition 7—undelivered or unclaimed goods50

Condition 8—carrier's charges51

Condition 9—liability for loss and damage51

Condition 10—fraud51

Condition 11—1imitation of liability51

Condition 12—insurance52

Condition 13—indemnity to carrier52

Condition 14—time limits for claims52

Condition 15—lien53

Condition 16—unreasonable detention53

Condition 17—computation of time53

Condition 18—loss adjustment53

Condition 19—impossibility of performance53

BIFA53

Definition and application54

Condition 1—definitions54

Condition 2—application and overriding law54

Condition 3—authority to accept contract conditions54

Condition 4—further authority to accept conditions54

The company54

Condition 5—agency55

Condition 6—acceptance of liability55

Condition 7—contracts arranged by the company as an agent55

Condition 8—freedom of choice for company55

Condition 9—use of associates, etc.55

Condition 10—liens55

C ondition 11—remuneration55

Condition 12—frustrated delivery56

Condition 13—(transit) insurance56

Condition 14—special delivery circumstances56

Condition 15—advice and information56

Condition 16—special cargoes56

Condition 17—dangerous goods or goods likely to cause damage56

Condition 18—declarations of value57

The customer57

Condition 19—warranties57

Condition 20—dangerous goods or goods likely to cause damage57

Condition 21—against whom to claim?57

Condition 22—the customer must indemnify the company57

Condition 23—moneys owed to the company57

Condition 24—customer guarantee of charges58

Condition 25—general average58

Liability and limitation58

Condition 26—diligence58

Condition 27—relief of liability58

Condition 28—delay58

Condition 29—1imitations58

Condition 30—time limits for claims59

Condition 31—the applicable law59

CHAPTER 8—STATUTORY REGULATION—AIR CARRIAGE61

CHAPTER 9—THE WARSAW SYSTEM63

Warsaw Legislation64

Which version of Warsaw and why it is important64

Major difficulties produced by recent U.K. legislation64

Unamended Warsaw65

Chapter I—Scope and definitions65

Article 166

Article 266

Chapter Ⅱ66

Section Ⅰ—pasenger ticket and Section Ⅱ—baggage check66

Section Ⅲ—air waybill66

Article 5—need for and absence of AWB66

Article 6—number of copies, and signatures67

Article 7—one AWB per package?67

Article 8—AWB particulars67

Article 9—effect of absence of particulars67

Article 10—consignor's responsibility68

Article 11—AWB particulars as evidence68

Article 12—right of stoppage in transit68

Article 13—acquisition of contract rights by consignee69

Article 14—consignor's and consignee's respective rights69

Article 15—limiting the effect of articles 12, 13 and 1469

Article 16—consignor's responsibility for documents attached to AWB69

Chapter Ⅲ—liability of the carrier69

Article 17—passenger liability70

Article 18—damage and loss liability70

Categories of road carriage72

Article 19—delay liability73

Article 20—carrier's defences74

Article 21—contributory negligence74

Article 22—1imitation of liability74

Basic liability limit74

Raising the liability limit75

Article 23—minimum levels of liability75

Article 24—permitted context for claims76

Article 25—deprivation of limitation76

Article 26—delivery, and notices of claim77

Article 27—"death" of carrier79

Article 28—jurisdiction and legal proceedings79

Article 29—time bar80

Article 30—successive carriers80

Chapter Ⅳ—Provisions relating to combined transportation—Article 3180

Chapter Ⅴ—general and final provisions81

Warsaw/Hague81

Relevant amended articles82

Article 8—AWB particulars82

Article 9—effect of absence of AWB particulars82

Article 15—negotiable AWBs82

Article 22—1imitation of liability83

Limitation amounts83

Package weight83

Litigation expenses83

Article 23—minimum levels of liability84

Article 25—intentional or recklessconduct85

Article 26—delivery and notices of claim85

Future Developments—Montreal Protocols Nos. 3 and 485

Simplicity86

The air waybill86

Liability of the carrier86

Limit of carrier's liability86

Loss of limitation86

Complication87

Guadalajara Convention88

The forwarder/contracting carrier's liabilities88

Notices of claim90

CHAPTER 10—NON-WARSAW91

CHAPTER 11—AIR WAYBILL CONDITIONS93

Notice93

Paragraph 1—definitions93

Paragraph 2—applicability of rules93

Paragraph 3—name and address on AWB93

Paragraph 4—limitation of liability94

Paragraph 5—special declaration of value94

Paragraph 6—package weight limitation94

Paragraph 7—protection of agents, and others94

Paragraph 8—reasonable dispatch (avoidance of delay)95

Paragraph 9—period of responsibility95

Paragraph 10—shipper's guarantee and payment of freight95

Paragraph 11—notice of arrival96

Paragraph 12—notice periods96

Paragraph 13—shippers' obligations96

Paragraph 14—authority to vary air waybill conditions97

Paragraph 15—transit insurance97

CHAPTER 12—AIRLINE HANDLING AGREEMENTS99

CHAPTER 13—CLAIMS DECISIONS103

Which liability context?103

Trucking of air cargo104

Air transportation or not?104

Worthy claimants and respondents, and "bad attitude"105

Anger and aggression from claimants106

Settlement criteria107

Entitlement to claim107

Freight107

Title to goods108

Subrogation109

Notice of claim109

Notice to contracting carrier only110

Jurisdiction110

Time-bars111

Delays in pursuit of claims112

Proving liability112

Air carriage112

Transhipments and successive or preceding carriers113

Force majeure113

Perceived force majeure113

Undoubted force majeure114

Continuing duty of care114

Contributory negligence115

Errors in documentation or handling instructions115

Inadequate packing115

Imprudent loading115

Delivery signatures116

ULDS and delivery circumstances116

Perishables—damaged by delay117

Inherent vice118

Claim amount (quantum)118

The measure of damages118

Foreign currencies119

Sound-arrived-value119

Added value119

Subrogated claims119

Interest120

Consequential losses120

Proof120

Foreseeability121

Mitigation121

Delayed perishables122

Consequential losses122

Damage122

Reasonableness of mitigation122

Accurate calculation and supporting documents123

Personal effects and household goods123

Settlement amount and limitation123

Currencies123

Weight basis123

RHA124

BIFA124

Air carriage124

Package limit under Warsaw/Hague and non-Warsaw125

Volumetric variance under unamended Warsaw125

Declared value for carriage125

Limitation breaking126

Interest126

Undesirable settlement practices127

Negotiation128

Settlement128

Lawyers and litigation129

APPENDIX 1—ROAD HAULAGE ASSOCIATION LIMITED CONDITIONS OF CARRIAGE 1991131

APPENDIX 2—BIFA STANDARD TRADING CONDITIONS1989139

APPENDIX 3—THE UNAMENDED WARSAW CONVENTION 1929145

APPENDIX 4—THE WARSAW CONVENTION AS AMENDED AT THE HAGUE, 1955, AND BY MONTREAL ADDITIONAL PROTOCOL No. 2, 1975155

APPENDIX 5—THE UNAMENDED WARSAW CONVENTION AS AMENDED BY MONTREAL ADDITIONAL PROTOCOL No. 1, 1975165

APPENDIX 6—THE WARSAW CONVENTION AS AMENDED AT THE HAGUE IN 1955 AND BY PROTOCOLS Nos. 3 AND 4 SIGNED AT MONTREAL IN 1975175

APPENDIX 7—GUADALAJARA SUPPLEMENTARY CONVENTION (1961)185

APPENDIX 8—AIR WAYBILL CONDITIONS191

Index195