The plaintiff, a person, owned two items of authentic jade, which seemed like frequent stones. He entrusted firm A to move the jade from Yiwu, Zhejiang province to Urumqi, Xinjiang province. The plaintiff packed the jade in burlap sacks and didn’t pay any further freight prices for his or her transport. Firm A charged 1,365 yuan for the freight and issued an air waybill which confirmed that:

• the cargo was described as “stones”;
• the cargo was comprised of two items;
• the cargo was packaged in a burlap sack; and
• the load of the cargo was 113 kilograms.

The jade was carried by a home airline (firm B). Nonetheless, when the flight arrived on the vacation spot, it was found that one of many stones had damaged into two items.

The plaintiff utilized for the worth of the jade to be appraised. It was concluded that the jade had initially been value round 350,000 yuan, however was value solely round 80,000 yuan after the injury.

The plaintiff introduced a lawsuit towards firm A and firm B for the loss he had suffered because of the injury to the cargo.

Get together responsible for cargo injury
The court docket thought of the next features to find out the legal responsibility on this case.

Bundle
In accordance with the Contract Legislation and the Aviation Legislation, the consignor is liable for cargo packages. Nonetheless, article 10(2) of the Civil Aviation Cargo Home Transport Guidelines of China stipulates that:

The provider shall examine the package deal of the consignor’s cargo. If the package deal of the cargo doesn’t meet the necessities of air transport, the package deal shall be improved by the consignor earlier than transportation conducts. The provider is probably not liable for inspecting whether or not the internal package deal of the consignor’s cargo meets the necessities.

The court docket held that the consignor could not have been clear in regards to the package deal necessities formulated by the provider for the cargo. Whereas it was true that the plaintiff had not packed the cargo correctly, firm A and firm B ought to have inspected the package deal to determine whether or not it was appropriate for transport.

Nonetheless, the plaintiff himself was liable for the validity and accuracy of the declaration of the outline and worth of the cargo. Because the plaintiff’s declaration was not appropriate or truthful, the carriers weren’t capable of determine an acceptable package deal for the cargo. Subsequently, the consignor additionally contributed to the improper packing and the injury of the cargo.

Worth insured
In accordance with the Civil Aviation Legislation, the consignor is liable for the accuracy of the cargo description on the air waybill. On this case, the plaintiff declared the cargo to be regular “stones” to firm A, and failed to point the precise worth on the waybill. It may thus be presumed that the plaintiff did not adjust to the obligation of truthful declaration.

Nonetheless, article 60(2) of the Contract Legislation supplies that:

Events shall observe the ideas of honesty and trustworthiness, and shall carry out all notification, help and confidentiality obligations, and so on, in accordance with the character and function of the contract and in accordance with enterprise practices.

Subsequently, the court docket held that, as a provider, firm A had been obliged to tell the consignor of the adverse penalties which will consequence from an untruthful declaration. The consignor ought to have paid the total specified quantity of the freight or obtained the high-value cargo insured.

Moreover, because the final and precise provider, firm B, was additionally obliged to examine whether or not firm A had fulfilled the data obligation.

Who was at fault?
In sum, the plaintiff and the 2 defendants had been all at fault for the cargo injury. Article 136(3) of the Civil Aviation Legislation stipulates:

In case of destruction, loss, injury or delay in respect of the consigned baggage or cargo, passengers and consignors have the appropriate to sue the primary provider and passengers and consignees have the appropriate to sue the final provider. Passengers, consignors and consignees all have the appropriate to sue the provider liable for the required transport zone the place the destruction, loss, injury or delay occurred. The carriers talked about above should bear joint legal responsibility to passengers, consignors or consignees.

On this case, the damages occurred through the air transport interval. Subsequently, firm A and firm B needed to bear joint and several other legal responsibility to the plaintiff as they had been the primary and final carriers.

Restrict of legal responsibility
Article 132 of the Civil Aviation Legislation supplies that:

Whether it is proved that the loss incurred through the air transport is induced intentionally by the provider or by an worker or agent of the provider, or brought on by their reckless actions or their failure to take actions when they’re absolutely conscious of the opportunity of inflicting such losses, the provider could have no proper to invoke the provisions of Articles 128 and 129 of this Legislation regarding limits on legal responsibility for compensation. Proof used to show these reckless actions or a failure to take actions by an worker or agent of the provider should additionally show the truth that the worker or the agent acted inside the scope of his or her employment or company.

The court docket held that the defendants had did not submit any proof to fairly clarify the reason for the cargo injury, nor had they proved that the cargo injury had not been brought on by the provider or the reckless dealing with of the cargo by the provider’s workers or brokers. Subsequently, the carriers weren’t entitled to the benefit from the legal responsibility limitation for home air carriers. As an alternative, the compensation legal responsibility of the carriers needed to be decided by the precise losses of the cargo.

Worth of cargo
The court docket determined the plaintiff’s loss ought to be 270,000 yuan beneath article 312 of the Contract Legislation:

If the events have agreed on the full quantity of compensation to be paid for injury to or lack of items, they shall act in accordance with their settlement. If there was no settlement or no clear settlement, and the difficulty can’t be decided by reference to the provisions of Article 61 of this Legislation, compensation shall be calculated in accordance with the market worth of the products at their supposed vacation spot on the time once they had been delivered or must have been delivered.

Provided that each the plaintiff and the defendants had contributed to the cargo injury, the court docket determined the defendants had bear 50% joint legal responsibility for the cargo injury, whereas the plaintiff himself additionally needed to bear the adverse consequence of not honestly declaring the character in addition to the worth of the cargo.

For cargo injury disputes arising from the worldwide air transport of cargo – for instance, the place the air carriage is ruled by the Conference for the Unification of Sure Guidelines for Worldwide Carriage by Air (the Montreal Conference), improper packaging would represent an exception for the provider. Furthermore, the legal responsibility limitation for the air provider beneath the Montreal Conference is unbreakable, even when the provider has dedicated gross negligence or recklessness. Nonetheless, on the subject of the home air carriage of cargos, issues could be very completely different – the provider has the duty to examine the outer package deal of the cargo to make sure it’s adequate for the air carriage. If the shipper’s packaging doesn’t meet the related necessities, the provider should ask the shipper in a well timed method to exchange and enhance it.

As well as, it’s value noting that home air carriers could be additionally required to tell or remind the shipper of the insurance coverage issues out of the precept of equity. Airways are deemed to be the dominant events in a contract, versus prospects.

Nonetheless, with regard to the limitation of legal responsibility, the court docket required the carriers on this case to bear the burden of proof to show that there was no recklessness or intention inflicting the cargo injury within the transport interval. This can be deemed unfair as a result of the aim of the limitation of legal responsibility is designed to guard the air provider from enterprise excessively excessive duty that could be dangerous to the continual affluent improvement of the aviation trade. It seems to be quite troublesome for airways to show a adverse reality with no clearer stipulation saying that the burden of proof ought to be transferred to the airline in such circumstances.