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A recent Frankfurt am Main Local Court decision is a useful reminder that in the event of an assertion of claims under the EU Flight Delay Compensation Regulation, the associated booking conditions must be considered when determining claim validity. Ultimately, travellers with access to corporate customer tariffs between their employer and the airline cannot claim compensation if their flight – whether for professional or private purposes – is delayed or cancelled.
The Federal Court of Justice recently requested a preliminary ruling from the European Court of Justice on the question of whether airlines are in principle entitled to choose the currencies in which their air fares are listed. Under EU law, airlines that offer flights departing from EU airports must list passenger fares; however, whether airlines have the right to choose the currencies of said listings required further clarity.
The Berlin Regional Court recently decided a case in which the plaintiff claimed compensation for damages that were said to have occurred during air transport. The plaintiff had filed a legal action at his home court in Hamburg, but the matter was referred to a Frankfurt court because Frankfurt Airport was involved. However, the Frankfurt court was also not competent to hear the case. The Berlin Regional Court received the case after the expiration of the two-year limitation period under the Montreal Convention.
Attempts are frequently made to shift all responsibility in connection with transport arrangements onto the forwarder/carrier. Thanks to a recent Darmstadt Regional Court judgment, clarity has now been established: a consignor is not entitled to shirk these responsibilities or to assert claims against the air freight forwarder should import approval be denied.
The Darmstadt Regional Court has ruled on carriers' liability under the Montreal Convention. The court dealt with the question of whether a plaintiff is entitled to claim compensation for lawyers' fees and interest if the carrier offered compensation based on the convention after the incident but before the claimant had filed legal action.
Under Article 22, Section 3 of the Montreal Convention, in the event of the destruction, loss or damage of cargo or a delay in its delivery, the liability of the carrier is limited. In a recent case the Federal Court of Justice ruled on the amount the carrier is entitled to claim for compensation in the case of a lost shipment and specified the requirements for such claims.
No matter how well goods are packaged and how great the effort of a carrier to consign a delivery in perfect condition to the customer, damage to goods, pallets and packaging cannot always be avoided. If damage occurs, the carrier will quickly be faced with a claim for damages, either from the shipper, the recipient or their insurer. The Federal Court of Justice redefined the calculation of damages in a ruling at the end of 2018.
The Budapest Convention on the Contract for the Carriage of Goods by Inland Waterways (CMNI) states that all claims arising from contracts regulated thereunder become time barred one year after the day on which the goods were or should have been delivered to the consignee. A Higher Shipping Maritime Court decision serves as a useful reminder that Article 24 of the CMNI applies to all claims relating to transport, regardless of which party raises them or whether they concern tortious or enrichment matters.
In a decision which conflicts with the examination sequence typically preferred by the Federal Court of Justice, the Hamburg Higher Regional Court ruled that a carrier's liability had been miscalculated and that that contributory negligence should have been examined before the limitations of liability. The court opined that, in view of Section 254 of the Civil Code, contributory negligence should be considered after or in conjunction with determining concrete damages and before the limitations of liability.
The Logistics Terms and Conditions (Logistik-AGB) 2019, which were jointly revised by the German Association for Freight Forwarding and Logistics, the Federal Association of Road Haulage, Logistics and Disposal and the Federal Association of Furniture Forwarders and Logistics, will enter into force on 1 July 2019. The new terms and conditions will replace the Logistik-AGB 2006 and supplement the Freight Forwarders' Standard Terms and Conditions 2017.
How should the weight of a shipment containing damaged goods but usable pallets be calculated, considering that this would form the basis for liability? According to a recent Federal Court of Justice decision, if the pallets are still usable, only the net weight of the goods counts. The court held that it is necessary to look closely at what has been damaged, as the fate of some items is not necessarily the fate of others.
The German Freight Forwarders' Standard Terms and Conditions (ADSp) are a joint body of recommendations for shipping industry associations and freight forwarders. However, given that there are (at least) three versions – namely, ADSp 2003, ADSp 2016 and ADSp 2017 – many companies struggle to clearly identify the ADSp on which they should base their services.
The Verden Regional Court recently sentenced a forwarder to pay full compensation plus interest calculated at nine percentage points above the basic lending rate under the Civil Code. Upholding the forwarder's appeal, the Celle Higher Regional Court held that the interest rate should be reduced to five percentage points above the basic lending rate, which is more in line with interest claims under the Convention on the Contract for the International Carriage of Goods by Road.
While settling claims out of court to avoid losing customers is becoming standard practice in the shipping and transport industry, such payments should not be made prematurely – particularly if the carrier's responsibility for the damage is unclear. In most cases, the opposing party interprets such goodwill payments as an acknowledgement of debt at a later stage in the proceedings. Therefore, carriers are advised to draw up a brief compensation declaration to avoid having to compensate twice.
The German Freight Forwarders' Standard Terms and Conditions (ADSp) 2017 are designed to protect forwarders and close any potential liability risk gaps, particularly for organisations involved in air transport. In order to clarify the issue of whether the ADSp 2003 applied only to transport that was governed by German law, the updated ADSp stipulate that they do not apply to international transport.