Forwarders can now sue airlines after statute of limitation deadline

FORWARDERS have won a round against airlines in liability cases after the US Ninth Circuit Court of Appeal ruled that air forwarders will have rights to indemnity against airlines in whose custody the cargo suffered damage, reported the Maritime Advocate.


The case concerns a suit brought against UPS Supply Chain Solutions (UPS-SCS) by an insurer trying to recoup what it paid out when it blamed UPS for damage to turbine engine during air transport.


But UPS blamed Qantas. The just-in-time suit against UPS came on the eve of the two-year statute of limitations provided by Article 25 of the Montreal Convention (1999), but UPS suit against Qantas came too late.


"Prior case law precluded air forwarders from seeking recourse against the custodial airline beyond the two-year statute of limitation," said the Maritime Advocate report.


But Michael McDaniel, of the Los Angeles Transport Law firm, Countryman and McDaniel, put forward case against such precedents before the San Francisco appeals court.


"On 10 February 2011, the court issued an historic decision adopting the view of UPS Supply Chain Solutions when sued for cargo loss or damage, an international air forwarder shall be guaranteed a right of indemnity against the responsible custodial airline," Mr McDaniel told the Maritime Advocate.


"Where the suit against the air forwarder was brought at the last minute, such case law in effect precluded the air forwarder from any remedy against the responsible airline," he said.


"UPS-SCS undertook this as an opportunity to test our belief that new features in the Montreal Convention were intended to reverse an injustice which had existed for over 70 years," said Mr McDaniels.


"Our belief proved to be correct. For the first time in history, there is equality of legal rights between airlines and air forwarders where the right to indemnity is concerned," he said.
(Source:http://www.schednet.com)