(A shipment of fresh agricultural product arrived with a problem and the consignee refused to take part of the shipment. Thus the right of disposition transferred to the shipper, and the consignee also lost the right to claim for damages. The shipper now is the only party possessing the right to claim. Is this interpretation correct?)
Q.
One piece of an arriving fresh agricultural shipment went astray and was located later. Since it has been left in ambient temperature for one full day, and the quality deteriorated, the consignee refused to take delivery of this piece. With the refusal to take the shipment, the right of disposition transferred from the consignee to the shipper. At the same time, the consignee lost the right to file a claim for damages. Please advise whether this interpretation is correct? (31 Dec 12)
A.
The rejection to take delivery and the right to file a claim are different and are not inter-related and must not be confused.

It is very natural for a consignee to reject delivery of a deteriorated agricultural shipment as it does not make sense in importing such deteriorated goods by paying import duty. Although, it is true that by rejecting delivery of a shipment, the right of disposition transfers from the consignee to the shipper, however, the right to file a claim does not transfer together. Regardless of whether a shipment has been delivered or the delivery has been rejected, it has no bearing with the right to file a claim.

Both the shipper and the consignee are parties to the transport contract and as long as it is within the 2-year validity period, any one of the two can file a claim. Fresh agricultural product has a inherent defect however this current damage clearly appears to have been caused by mishandling on the part of the carrier, therefore, there is no defense but to pay the claim amount up to a maximum of 19SDR per kilogram of damaged product.

If there was a Preliminary Notice of Claim filed, the clamant is entitled to submit a Formal Claim after all supporting data has been assembled.

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