Unfortunately, amongst the millions of freight shipments of all modes that occur on a daily basis, some freight does get damaged. These damages spawn freight claims, and some of them generate litigation. A defense often asserted in a lawsuit for freight damage is that the shipper or consignee has not appropriately “mitigated its damages” by salvaging and resellmg the damaged freight. Also, shipments may be refused by the consignee on the grounds of delay, or other bases. In those situations, obligations arise for the carrier to take action to salvage and resell the goods.

Perishable Goods: Act Fast, But Be Careful –

Perishable goods are extremely problematic if they arrive damaged upon delivery. There are FDA statutes, and commensurate regulations, that prohibit sale of adulterated food. See generally, 21 U.S.C. § 342. Thus, applicable FDA standards may make it illegal or improper to sell damaged products which are intended for human use or consumption. These restrictions should be taken into consideration in determining damages sustained to contaminated cargo.

Originally Published by the TRANSPORTATION LAWYERS ASSOCIATION, Volume 3, Number 2 - October, 2001.