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Newsletters
> September 2003
ROAD CARRIER THAT DOES NOT ISSUE BILL OF LADING
CANNOT LIMIT LIABILITY
The British Columbia Court of Appeal has made it quite
clear that if a carrier fails to comply with the law requiring it
to issue a bill of lading it will not be entitled to avail itself
of the limitation of liability provisions of the regulations. In
Paine Machine Tool Inc. v. Can-Am West Carriers Inc. (2003),
2003 BCCA 50 (B.C.C.A.) the Court of Appeal held that regulations
setting out the requirement of the issuance of a bill of lading
and its contents should be adhered to unless it is proved that the
parties agreed to other terms for their contract, either expressly,
by course of dealings or industry practice. "The regulations
impose on the carrier the burden of issuing a bill of lading showing
specified facts and containing other information concerning the
shipment...the purpose of the obligation imposed on the carrier
is to clearly establish the liabilities and obligations of the parties
prior to shipment. It would be inappropriate for the appellant to
be allowed to rely on the benefits of the conditions contained in
the Regulations when it failed to comply with the obligations they
impose." The carrier was not entitled to limit liability.
Rui Fernandes
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