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ARTICLE · 23 JULY 2019

Federal Court Decision Highlights Importance Of Proper Transportation Contract Terms

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The recent decision of the Federal Court in the case Labrador-Island Link General Partner Corporation et al. v. Panalpina Inc. et al.

CanadaTransport
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Borden Ladner Gervais LLP
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The recent decision of the Federal Court in the case Labrador-Island Link General Partner Corporation et al. v. Panalpina Inc. et al. reaffirms the effectiveness of contractual terms between transportation companies. The decision is an important industry reminder to ensure that the proper terms are included in transportation contracts.

The Facts

The plaintiffs retained Panalpina to provide general freight forwarding services for an electrical transmission project, and they signed a Freight Forwarding Service Agreement (FFSA) in 2013 outlining their roles and obligations towards one another.

Using the procedure outlined in the FFSA, Panalpina contracted two companies, Logistec Stevedoring Inc. and Desgagnés Transarctik Inc., to move the reels from Québec to Newfoundland. The first shipment arrived damaged on June 1, 2015. The plaintiffs put Panalpina on notice of their intent to claim for the first shipment on September 9, 2015. The second shipment arrived

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