THE LEGAL AND BUSINESS ASPECTS OF HANDLING CARGO CLAIMS IN France Bertrand Courtois – Avocat à la Cour (Paris) 5th INTERNATIONAL CARGO RECOVERY CONFERENCE www.courtois-finkelstein.com New York & Montreal – 17 & 20 June 2016

PROTECTING THE ACTION Road (domestic) : notice within 3 days CMR : notice within 7 days (immediately if apparent damage) Rail : 3 days – CMNI (international) : formal report except recklessness Air : notice within 14 days Maritime : Domestic + Hague Visby : 3 days Maritime : Hamburg Rules : 15 days Maritime : Rotterdam : 7 days PROTECTING THE ACTION www.courtois-finkelstein.com

APPLICABLE TIME LIMITS www.courtois-finkelstein.com

APPLICABLE TIME LIMITS ROAD & RAIL : 1 year CMR : 1 an (total loss : foll. 30th or 60th day) – 3 years in case of recklessness SEA - NATIONAL + HAGUE VISBY : 1 year HAMBURG RULES : 2 years ROTTERDAM RULES : 2 years AIR : 2 years RIVER (CMNI) : 1 year RAIL (CIM) : 1 an – 2 years in case of recklessness TRANSIT – WAREHOUSING - LOGISTICS : 5 years FREIGHT FORWARDING : 1 year APPLICABLE TIME LIMITS www.courtois-finkelstein.com

PRACTICAL INFORMATION ON TIME LIMITS Time extensions are valid – Must be straightforward and unconditional Time limit interrupted by : - Issuance of proceedings (incl. court survey application) - Carrier’s acknowledgment of liability - Notification of a figured claim in CMR matters PRACTICAL INFORMATION ON TIME LIMITS www.courtois-finkelstein.com

CARRIERS LIMITATIONS (SEA) www.courtois-finkelstein.com

CARRIERS LIMITATIONS (SEA) French domestic law : 666,67 SDR / package or 2 SDR / Kg (highest) Hague Visby : same Hamburg Rules : 835 SDR / package or 2,5 SDR / kg (highest) Rotterdam Rules : 875 SDR / package or 3 SDR / kg (highest) Except recklessness (faute inexcusable) Multimodal : limits of the phase concerned by the loss or damage will be relevant CARRIERS LIMITATIONS (SEA) www.courtois-finkelstein.com

CARRIERS LIMITATIONS (ROAD) www.courtois-finkelstein.com

CARRIERS LIMITATIONS (ROAD) DOMESTIC 3 tons – more : 14 € / kg – max 2.300 € / ton (smallest) – except recklessness Less than 3 tons : 23 € / kg – Max : 750 € / package – except recklessness Delay : amount of freight (except recklessness) TEMPERATURE CONTROLLED CARRIAGE 3 tons – more : 14 € / kg – max 4000 € / ton (except recklessness) Less than 3 tons : same CMR 8,33 SDR / Kg – Delay : amount of freight - Except recklessness CARRIERS LIMITATIONS (ROAD) www.courtois-finkelstein.com

CARRIERS LIMITATIONS (OTHERS) www.courtois-finkelstein.com

CARRIERS LIMITATIONS (OTHERS) RIVER Domestic : 762,25 € / ton or number of tons X 152,45 € (smallest) CMNI (international) : 666,67 SDR / package or 2 SDR / kg (highest) Container : 25.000 SDR AIR Warsaw : 16,5837 SDR / kg (except recklessness) - Montréal : 19 SDR / kg RAIL 17 SDR / kg Delay : 4 times amount of freight CIM : 17 SDR / Kg (exclusive of accise rights) CARRIERS LIMITATIONS (OTHERS) www.courtois-finkelstein.com

CARRIERS LIMITATIONS (OTHERS) EUROTUNNEL 8,33 SDR / kg – Max : 70.000 SDR FREIGHT FORWARDING Personal negligence : 20 € / kg – Max 5000 € / T – except recklessness Subcontractors’ acts and negligence : back to back liability CARRIERS LIMITATIONS (OTHERS) www.courtois-finkelstein.com

BREAKING LIMITS – WHAT TEST ? www.courtois-finkelstein.com

IN CARRIAGE BY ROAD – SEA & FREIGHT FORWARDING PROVING RECKLESSNESS : very deliberate negligence implying awareness of the carrier that a damage or loss would probably result from the negligence / his behaviour Ex (Sea) : loading cargo on deck whilst forbidden, leaving a container without care, obvious lack of maintenance of the ship’s equipments. Ex (Road) : Parking in unsafe place during transit, carrier aware of nature / value of the cargo, alternative available, no protection, alarm, anti-theft system etc., cargo unattended for a long time, lorry with soft (rather than hard) protection. Ex (Freight forwarders) : failure to relay instructions, choice of inappropriate subcontractor, deliberate lack of follow up of the operation etc. BREAKING LIMITS – WHAT TEST ? www.courtois-finkelstein.com

Road : Parties to the contract + actual shipper / receiver if suffered the loss Air : Parties to the contract only Sea : consignee on B/L (Cass. Com, 21 Feb. 2006, no 04-10592) Shipper on B/L + actual shipper + actual receiver if they prove that they suffered the loss TITLE TO SUE www.courtois-finkelstein.com

SUBROGATION www.courtois-finkelstein.com

SUBROGATION Need to provide (alternative) : Insurance subrogation (art. L 121-12 & L 172-29 Insurance Code) Policy (indemnity paid pursuant to a contractual obligation) Subrogation receipt Proof of payment Civil subrogation (subrogation conventionnelle) (art. 1250 Civil code) Subrogation receipt (signed simultaneously or before payment) SUBROGATION www.courtois-finkelstein.com

FREIGHT FORWARDERS’ LIABILITY www.courtois-finkelstein.com

FREIGHT FORWARDERS’ LIABILITY Liable for both: Their sub-contractors’ acts and omissions (up to their own applicable limits) Their personal liability/negligence Legal regime : Statutory contract Limits : 20€ / Kg – max 5000€ / ton – Except recklessness Interest : Two deep pockets – Back to back liability FREIGHT FORWARDERS’ LIABILITY www.courtois-finkelstein.com

COURT SURVEY www.courtois-finkelstein.com

COURT SURVEY www.courtois-finkelstein.com Useful and recommended when : Complex / important matter Lack of evidence & Need to secure evidence Ascertain facts Risks of obstructions by some parties Assess quantum Need for a salvage Positive points : Ordered quickly (few days or less) Contradictory and (more or less) binding Influential – Strong impact on the court Interrupts time limit COURT SURVEY www.courtois-finkelstein.com

SHIP ARREST www.courtois-finkelstein.com

SHIP ARREST Very efficient to obtain security Quick procedure and result (few hours sufficient to prepare the arrest) Not very expensive – No exposure towards Owners’ costs Conditions : Vessel flies the flag of the 1952 (arrest) Convention : Allegation of maritime claim Vessel does not fly such a flag : either maritime claim (allegation suffices) or prima facie good claim SHIP ARREST www.courtois-finkelstein.com

WHAT FORMALITIES IF ANY ? www.courtois-finkelstein.com

WHAT FORMALITIES IF ANY ? Power of attorney not required Apostil not required Security to the court not required Translation of documents into French required before courts Translation of documents not required in arbitration Original copies of documents not required – copies suffice WHAT FORMALITIES IF ANY ? www.courtois-finkelstein.com

HOW LONG ? Summary / urgent proceedings : Apply to application for court survey, ship arrest, attachments Between a few hours and a few days Substantive proceedings : Lower courts : between 12 and 24 months (sometimes more) Appeal proceedings : less than 18 months Notice : law suits may be brought within 24 hours from instructions HOW LONG ? www.courtois-finkelstein.com

HOW MUCH ? www.courtois-finkelstein.com Lawyers fees (time spent basis or contingency) – Mostly time spent basis Bailiffs charges (less than €250) Translators’ charges : approx. €600 (unless lots of documents in foreign language) Court and local clerk charges (€700) No need for claimant to put up counter security Minimum exposure towards opponents’ costs in case the action fails HOW MUCH ? www.courtois-finkelstein.com

WHAT ABOUT RECOVERY OF COSTS ? Court survey costs : 100% recoverable Lawyers fees : partly recoverable Bailiffs / court charges / translation charges : 100% recoverable WHAT ABOUT RECOVERY OF COSTS ? www.courtois-finkelstein.com

LAWYERS FEES & INVOLVEMENT www.courtois-finkelstein.com

LAWYERS FEES & INVOLVEMENT French Avocats / lawyers handle cases from A to Z (one profession) Paris Avocats appear before all courts of France + French overseas territories In most cases : fees are calculated on a time spent basis (between €200 / €300) Contingency scheme possible and allowed by Bar Authorities Contingency scheme possible before and after law suits are brought LAWYERS FEES & INVOLVEMENT www.courtois-finkelstein.com

4th INTERNATIONAL CARGO RECOVERY CONFERENCE BBBGGGGGGV 4th INTERNATIONAL CARGO RECOVERY CONFERENCE ANY QUESTIONS ? www.courtois-finkelstein.com