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Full Volume 19 - Federal Maritime Commission

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846 FEDERAL MARITIME COMMISSION<br />

real damage In a claim for refund of freight charges the complainant must show that it<br />

has paid freight or has succeeded to the claim in a valid fashion such as by assignment<br />

Noauthorities are cited holding that a parent corporation without more has standing to<br />

seek recovery of damages suffered by its wholly owned subsidiary corporation Trane<br />

Co v South African Marine Corp N Y 374 378<br />

Reparation was denied to a shipper which had been told by an agent of the carrier that<br />

the rate to applicable a shipment of motor oil was 961cubic foot a temporary rate<br />

applicable only to shipments between certain listed ports which was subsequently<br />

advised that the quoted rate was in error and that the shipment rate would be 129 25<br />

cubic foot the general commodity rate applicable to motor oil under the carrier s tarift<br />

and which paid the higher rate under protest The port of destination stated on the bill of<br />

lading was not among the ports eliaible for the reduced temporary rate accordingly the<br />

shipment was required to be billed at the general commodity rate Celestial Mercantile<br />

406<br />

Corp v M Golodetz Co Inc 404 405<br />

In considering claims for reparation the determination of the applicable rate shall be<br />

based on what can be shown is the true nature of the commodity shipped<br />

Such a<br />

determination will be based on all the evidence of record with no single document or<br />

piece of evidence necessarily being controlling Kraft Foods v Moore McCormack<br />

Lines Inc 407 409 410<br />

In preparing a bill of lading it is usually the case that the carrier in classifying and<br />

rating a shipment must look to the information supplied to him by the shipper or freight<br />

forwarder Elementary fairness dictates that the carrier should be entitled to rely on<br />

such information and to charge and collect freisht in accordance with the description<br />

supplied by the shipper To require a carrier to inquire of a shipper whether the latter s<br />

description of the goods shipped is correct would an place undue burden on the carrier<br />

PanAmerican Health Organization v Prudential Lines Inc 412 414<br />

The importance of declaring in bills of lading the correct description of the cargo<br />

shipped cannot be overemphasized The carrier has the right to expect that a shipper<br />

will properly identify his shipment just as the shipper has the right to expect the carrier<br />

to charge the proper rate for the type of goods actually carried An equitable rule would<br />

seem to limit reparations based on misidentification and misrating to those cases where<br />

the actual language used on the face of the bill of lading indicates an improper<br />

misclassification or obvious disregard by the carrier of the descriptive language used by<br />

the shipper Further a shipper who insists upon using a trade name rather than an<br />

appropriate and readily available commodity index description in the filed tariff should<br />

beheld to do so at his peril Id 415 414<br />

A shipper was entitled to reparation where due to misdescriptions of cargo by the<br />

shipper the bill of lading covering the shipment placed the goods shipped in an incorrect<br />

class of commodities having a higher shipping rate than that actually authorized for the<br />

goods shipped That the carrier was without fault with regard to the error was<br />

immaterial Id 415<br />

A carrier which did not deny the merits of a shipper s claim of overcharge but<br />

nonetheless denied the claim on the ground that it was not timely filed under atariffrule<br />

was not only within the rights under its governing tariff but was required to take the<br />

action which it had taken The unauthorized payment of an otherwise legitimate claim in<br />

response to the application of stimi1li e g the filing of a reparation complaint with the<br />

<strong>Commission</strong> while denying all other similar claims in the absence of such stimuli<br />

represents precisely the type of discriminatory practice proscribed by section 16 First of<br />

the Shipping Act <strong>19</strong>16 SCM Corporation v Seatrain International S A and Seatrain<br />

U K Ltd 417 4<strong>19</strong><br />

<strong>19</strong> FM C

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