Cargo Liability “State of the Union” Dan Soffin 18 April 2015 Montreal, Quebec Eighth Annual McGill Conference on International Aviation Liability & Insurance

State of the Union for Cargo Liability Topics From Warsaw - Hague to MAP4 - Montreal 99 The Legal Framework Jurisdictional Challenges and Global Uniformity 8 th Annual McGill Conference on International Aviation Liability & Insurance

From Warsaw - Hague to MAP4 - Montreal 99 Air Waybill Issuance Wair waybill WHair waybill MAP4air waybill + “any other means which would preserve a record” M99air waybill + “any other means which would preserve a record” 8 th Annual McGill Conference on International Aviation Liability & Insurance

From Warsaw - Hague to MAP4 - Montreal 99 Air Waybill Particulars WArt 8 17 requirements (!) WHArt 8 departure, destination, stopping place, convention notice MAP4Art 8 (AWB and Cargo Receipt) departure, destination, stopping place, weight M99Art 5 (AWB or Cargo Receipt) departure, destination, stopping place, weight 8 th Annual McGill Conference on International Aviation Liability & Insurance

From Warsaw - Hague to MAP4 - Montreal 99 Non Compliance Wno liability limitation (AWB or particulars) WHno liability limitation (AWB or particulars) MAP4no effect on liability limitation M99no effect on liability limitation NB: contract of carriage still valid and otherwise governed by the Convention 8 th Annual McGill Conference on International Aviation Liability & Insurance

From Warsaw - Hague to MAP4 - Montreal 99 Destruction, loss, or damage (all Conventions) liability for damage sustained there must be an “occurrence” or “event” during the “carriage by air” the occurrence or event must cause the damage unless proven otherwise, damage is presumed to have occurred during carriage by air NB: M99 Art 18(4) If without the consent of the shipper… Other modes of carriage deemed to be carriage by air where does “misdelivery” fall? 8 th Annual McGill Conference on International Aviation Liability & Insurance

From Warsaw - Hague to MAP4 - Montreal 99 Delay (all Conventions) carrier liable for damage occasioned by delay 8 th Annual McGill Conference on International Aviation Liability & Insurance

From Warsaw - Hague to MAP4 - Montreal 99 Defences W- “all necessary measures” or impossibility -negligent pilotage, handling of aircraft or navigation contributory negligence applies to delay and damage WH -“all necessary measures” or impossibility -contributory negligence -inherent defect, quality or vice applies to delay and damage 8 th Annual McGill Conference on International Aviation Liability & Insurance

From Warsaw - Hague to MAP4 - Montreal 99 Defences Cont’d MAP4 Delay: “all necessary measures” or impossibility Damage: a) inherent defect, quality or vice b) defective packing… c) act of war or armed conflict d) act of public authority… M99 Delay: “all measures reasonably required” or impossibility Damage:a) inherent defect, quality or vice b) defective packing… c) act of war or armed conflict d) act of public authority… Both Conventions allow contributory negligence defences for delay and damage 8 th Annual McGill Conference on International Aviation Liability & Insurance

From Warsaw - Hague to MAP4 - Montreal 99 Limitation W250 FF/kg WH250 FF/kg MAP417 SDR/kg (now 19 SDR) M9917 SDR/kg (now 19 SDR) Unlimited Liability Wwilful misconduct WHintent or recklessness and with knowledge MAP4unbreakable limit/absolute limitation M99unbreakable limit/absolute limitation 8 th Annual McGill Conference on International Aviation Liability & Insurance

From Warsaw - Hague to MAP4 - Montreal 99 Written Notice of Complaint W Damage 7 days Delay14 days WH Damage14 days Delay21 days MAP4Damage14 days Delay21 days M99 Damage14 days Delay21 days notices in writing person entitled to delivery no notice means no action NB: is a Shipper’s notice valid? 8 th Annual McGill Conference on International Aviation Liability & Insurance

From Warsaw - Hague to MAP4 - Montreal 99 Extinguishment All conventions provide for extinguishment after 2 years from date of arrival at destination date on which aircraft ought to have arrived date on which carriage stopped NB: difference between “extinguishment” and “limitation” 8 th Annual McGill Conference on International Aviation Liability & Insurance

From Warsaw - Hague to MAP4 - Montreal 99 The Current Picture widely adopted exclusivity widely established in powerhouse jurisdictions ready for e-freight ( when will e-freight be ready ? ) clear monetary unit with unlimited liability no longer an issue preservation of essential defences and principles and now unbreakable limits of liability remains unclear on “misdelivery” remains unclear on whether Shippers’ written notices of complaint satisfy Arts 26/31 litigation generally declining 8 th Annual McGill Conference on International Aviation Liability & Insurance

The Legal Framework Warsaw – Hague – MAP4 – Montreal 99 other conventions / modes of carriage IATA Resolution 600b: The Air Waybill IATA Recommended Practice 1601: Conditions of Carriage For Cargo extra-contractual Terms & Conditions / Obligations laws of the local jurisdiction 8 th Annual McGill Conference on International Aviation Liability & Insurance

The Legal Framework IATA Resolution 600b: The Air Waybill “…goods are accepted in apparent good order and condition…” “goods may be carried by any other means including road, unless contrary instructions are given hereon by the Shipper…” incorporates conventions conditions of carriage, regulations, tariffs, limitations on liability provides a contractual term to limit liability to 19 SDRs/kg incorporates requirement of written notice of complaint Incorporates provisions for extinguishment NB: various versions of 600b abound 8 th Annual McGill Conference on International Aviation Liability & Insurance

The Legal Framework IATA Recommend Practice 1601: Conditions of Carriage incorporates Convention applicability and provisions incorporates provisions of IATA Resolution 600b provides additional contractual terms which, if not in conflict with Convention provisions, should be upheld reinforces limitation of liability, written notice, extinguishment, etc… 8 th Annual McGill Conference on International Aviation Liability & Insurance

The Legal Framework Extra-contractual Terms & Conditions/Obligations shipper’s additional “instructions” conflict with “no modification” terms (600b and 1601) does cargo acceptance and carriage matter? Laws of the Local Jurisdiction does the convention apply? will the convention be applied? will it be treated as an exclusive cause of action? 8 th Annual McGill Conference on International Aviation Liability & Insurance

Jurisdictional Challenges and Global Uniformity Adoption M99 is most globally adopted of the conventions still, less than 60% of ICAO contacting states adhere does domestic enabling legislation keep up with ratification or accession? 8 th Annual McGill Conference on International Aviation Liability & Insurance

Jurisdictional Challenges and Global Uniformity Exclusivity will a state abide by convention provisions? will domestic law be used as an adjunct? does convention compete with domestic law? do heavyweight jurisdictions carry weight? 8 th Annual McGill Conference on International Aviation Liability & Insurance

Jurisdictional Challenges and Global Uniformity Cultural Compatibility do local values and principles mesh with convention principles? limitation of liability extinguishment damages 8 th Annual McGill Conference on International Aviation Liability & Insurance

Jurisdictional Challenges and Global Uniformity Tribunal and Judicial Attitudes awareness, understanding of convention principles and intended outcomes interpretive skills in wide ranging jurisdictions awareness, synthesis of international judgments awareness, understanding of the aviation industry commitment to principles of unification local plaintiff v. foreign carrier is there a remedy for every wrong? 8 th Annual McGill Conference on International Aviation Liability & Insurance

Jurisdictional Challenges and Global Uniformity Some Examples European Union India Brazil 8 th Annual McGill Conference on International Aviation Liability & Insurance

THANK YOU 8 th Annual McGill Conference on International Aviation Liability & Insurance

Eighth Annual McGill Conference on International Aviation Liability & Insurance