Lost leather and dodgy depots
Fifteen pallets of leather were stolen from a depot in Argentina. The ship agent was held jointly and severally liable with the ship owner for the value of the cargo, which was USD 260,000. The ship owner did not pay the claim and subsequently sold their business to a new company. The ship owner’s P&I Club also advised ITIC that their former member still owed premium and, as a result, the club would not be able to pay a claim.
Unfortunately, the defence of the ship agent by the P&I Club appointed lawyers had not been on the basis of their agency status. It was too late to amend this by the time the ship agent notified ITIC of this claim.
In this circumstance, ITIC paid USD 170,000 towards the claim and began recovery proceedings against the depot, from which the pallets were stolen.
The court found in favour of the ship agent and a recovery of USD 151,000 was made.