.
The Quest
              
Inside this issue:

Single transaction bonds required for suspected AD/CVD shipments

Appeals court reverses case involving ‘independent contractor’

$5.2 million verdict against a transportation broker and driver in negligent hiring case

C-TPAT and AEO to be mutually recognizable in June 2012

Goods from Argentina to lose GSP benefits

Claims Review:
International Coverage

      

                    

              
Claims Corner: International Coverage
  
The following are actual claims that were covered under Avalon’s Combined Transit Liability (CTL) Program. Our CTL program automatically includes an International Coverage option to provide legal defense if a lawsuit is filed against you outside the United States and Canada, and also appoints attorneys with the expertise to defend these matters internationally.
 
Damaged Air Shipment
An Indirect Air Carrier (IAC) was hired to ship a piece of equipment from Los Angeles to Shanghai, China. The IAC issued their house air waybill which referenced Terms & Conditions of Service and Limitations of Liability. When the shipment was unpacked by the consignee, severe damage was noted. The consignee brought a lawsuit against the IAC in China for the damages. Avalon appointed a Chinese lawyer and the IAC was only found to be legally liable for 19 Special Drawing Rights (SDRs) per kilogram, or about $28 per kilogram because the IAC utilized appropriate limitations of liability in its house air waybill.

Claim Amount:               $41,100
Settlement:                     $6,088
Legal Fees                      $2,750
Insured’s Deductible:   $5,000  
 

Improper Temperature Setting
A freight forwarder shipped 550 boxes of frozen fish from New York to Portugal with bill of lading specifying a required temperature of -20°F for the container. The carrier read the shipping instructions incorrectly and set the temperature on the container to +20°F which caused the frozen fish to spoil. The consignee named the NVOCC and the ocean carrier in a lawsuit to recover for the damaged cargo and lost profits. The lawsuit was initiated in Portugal, and Avalon appointed a Portuguese attorney who was successful in getting the Portuguese court to rule that the error was the result of the carrier’s negligence. The NVOCC’s CTL policy covered all legal fees in full because the insured purchased First Dollar Defense, the policy deductible did not apply to attorney fees and only would have applied to the settlement if there was one.

Claim Amount:               $45,202
Settlement:                     $0
Legal Fees                      $7,240.12
Insured’s Deductible:   $0

  

    
For more information, please contact your local Avalon office or Andriana Davis at (847) 700-8087 or at adavis@avalonrisk.com. A list of our offices may be found at www.avalonrisk.com.
             
       

Avalon Risk Management
www.avalonrisk.com

ATLANTA | BOSTON | CHARLESTON | CHICAGO | HOUSTON
LOS ANGELES | MIAMI | NEW YORK | SAN FRANCISCO | SEATTLE | TORONTO


  
Privacy Policy. Avalon's Quest newsletter is designed to provide critical information to the transportation and logistics industry. Subscribers benefit by receiving policy change notifications, special industry information bulletins, and notifications of upcoming conferences. Avalon Risk Management is not responsible for the accuracy or reliability of information contained herein. The reader/user assumes all risk in the use of such information. To view prior issues of The Quest, visit www.avalonrisk.com/news.html

To ensure delivery to your inbox (not bulk or junk folders), please add marketing@avalonrisk.com to your address book.

 

Copyright © 2005-2012. Avalon Risk Management. All Rights Reserved.