GKG Law Achieves Successful Result in Litigation Involving Amended Bills of Lading
GKG Law, P.C. recently successfully represented a non-vessel operating common carrier (NVOCC) in litigation in which the NVOCC's customer requested that another shipper be identified on the NVOCC's bills of lading while the goods were in transit. Subsequently, when the goods arrived at their destination and were unable to clear Customs because the goods were not as described in the bills of lading, the original shipper contended that there had been a novation (substitution) of the contract and thus the original shipper was no longer responsible for freight, demurrage and disposal costs. As a result of the shipper's refusal to assume responsibility for those costs, the NVOCC incurred in excess of $300,000 in damages.
GKG brought suit in federal court alleging breach of contract and fraud against the shipper based upon the fact that the original shipper knew that the goods being shipped were not accurately described. After GKG Law moved for summary judgment, the Defendant settled the case not only for all of the NVOCC's direct costs but also for attorneys' fees of almost $100,000. Although a positive result was achieved, the case provides a cautionary lesson for NVOCCs in agreeing to allow replacement shippers to be identified on bills of lading and other shipping documents.
Please contact GKG Law if you would like to discuss these issues further. Brendan Collins may be reached by telephone at (202)342-6793 or by email at bcollins@gkglaw.com.
