outlining shipper/consignees responsibility to pay freight bills
A good place to start, I think, would be Scam Chaser's posting of 05-30-2008, wherein he discusses the Mercantile Law Amendment Act, and how it may apply. And, thank you for that and other postings Scam Chaser!
2nd. I think would be to read transportation lawyers interpretations of case results, and how it affects the transportation industry.
Here is a link to Fernandes Hearn LLP.'s website, where you can find very informative discussions of these issues in the newsletters section.
Fernandes Hearn LLP - Maritime, Insurance and Transportation Law Firm Canada
Here is a quote from the Dec. 07 issue that considers the impact of the one referred to by Scam Chaser.
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The issue on the appeal concerned the general question as to the circumstances upon which a carrier of goods might claim from the consignee payment of the freight charges otherwise generally owed to it by the shipper.
The Court of Appeal found that Molson became the owner of the cargo by virtue of the same being tendered by Consumers Glass to the carriers for shipment. The Court found that it was therefore incumbent on Molson to show that the statute did not apply, by showing that the carriers in fact waived their entitlement to this protection. This required Molson to show that there was something both intentional and binding with the reference to "pre-paid" on the bill of lading (Note: such a reference on a bill of lading is usually intended only to ease billing logistics between the shipper and the carrier - the carrier being directed to forward invoicing to the shipper as opposed to a third party or the consignee paying on 'collect' terms). The Court of Appeal ruled that the 'prepaid' reference was accordingly not enough by itself to deprive the carriers of the protection of the statute. This manifestation of the standard intent of initially looking to the shipper for freight charges does not by itself equate to a carrier choosing not to avail itself of this statutory 'fall back' position of looking to the consignee for payment if necessary. This however does not mean that in a certain fact situation that a carrier might represent to a shipper or consignee that it will not exercise its right to look to the consignee for payment having the effect of the loss of this protection. Something more is however is needed in this regard than a mere 'prepaid' reference on the bill of lading. Absent specific arrangements whereby the carriers were not to take the benefit of the legislation that this provision should govern, the Court ruled that parties cannot be presumed to have relinquished or waived rights by mere silence.
In conclusion, the notion or concept of "pre-paid" services does not by itself constitute a relinquishment by the carrier of the rights afforded to it under the legislation.
Accordingly, the carriers were able to recover their freight charges, which were significant (exceeding $200,000) from Molson Breweries.
While this no doubt worked an injustice in the mind of Molson, the legislative trade off was clear. Molson would have been able to claim against the carrier for cargo loss damage or delay, but equally having received the shipment and benefiting thereby it had to make the carriers whole for unpaid freight charges.
Gordon Hearn"
