Shipper Mitigating Loss

[allfreight]

Hi, I need some help, we have a claim for several thousand dollars. Food grade, sugar product the outside cardboard drums were damaged. Inside is protected by plastic bags which show no sign of damage. The customer/consignee marked the pod that the drums were damaged, and issued a claim. The customer doesn't believe they should release the product to us nor have they made any attempt to sell it themselves to mitigate the loss. Has anyone had any experience with this type of situation? I want to quote references etc. to make the point that they have a legal responsibility to mitigate the loss. Thanks

 

[RK in AB]

Food Grade Damages

Last year I had some onion powder in cases damaged. The boxes were broken but the plastic bag inside was not. A claim was made and I was instructed to destroy the product as opposed to giving it to the carrier to mitigate their loss. The reason behind the claim was that the boxes, when intact, were safe from contamination. Because the boxes had been torn or broken, contamination free was no longer certain. The supplier refused to allow the product to be released to anyone because it was their name on the packaging and could create legal trouble down the road if the product was used and was truly contaminated. It seems like it is unfair but should something happen and someone get sick or worse, the responsibility ultimately lies with the producer of the product and that is why they choose to dispose of it instead of allow it to be sold off. If the packaging had been smaller units it would have been different. The damaged packages would need to be destroyed. In both your case and mine, the smallest packaging was unfortunately a bulk box.

 

[lowmiler88]

If they will not return it demand a certificate of destruction to make sure they do destroy it.