A Toronto-based freight forwarding company 'Moving Towards Atlantic Limited has signed a contract with New Brunswick based
Question:
A Toronto-based freight forwarding company 'Moving Towards Atlantic Limited has signed a contract with New Brunswick based 'Irvings Oils & Gas Incorporation' to move the bulk of the steel and iron coils imported from Jamshedpur to their factory found in Saint John. The terms and conditions stipulate that the freight forwarder will be responsible for arranging the transportation of the materials from the manufacturing facilities of the exporter to the Mundra Port in Kutch District via railways under a concessional fee arrangement with the Rail authorities as the freight forwarder are redeeming its GST and tax rebates credited to its Indian subsidiary company. The rate mentioned under the contract for this long railway route was a concessional rail cargo fee of $675 per tonne of the iron and steels coils. Both the parties to the contract fulfilled their underlying commitments duly and contract was executed well in time. Meanwhile purchasing and logistics manager of Irvings Oil and Gas Inc Mr Travis recommended services of Moving Towards Atlantic Limited to one of their suppliers energy company 'Lambert Oils Limited' based in Calgary, Alberta. Lambert signed the contract with the same freight forwarder under the impression that they will also avail the same concessional rail cargo fee, however the actual cargo transport fee they noticed in their invoice was $1,000 per tonne. This makes a contract violation for Lambert and they sued the forwarder company claiming the compensation of $325,000 for one thousand tonnes of the cargo they transported from the exporter's manufacturing premises to the seaport. Question : 1 Citing the applicable STC clauses, clarify your understanding of the situation and mention clearly whether the suit is admissible and tenable under the law? 2. Continuing from the case in hand, Lambert Oils Limited also claimed back the customary allowances, profits on foreign exchange paid by the carrier and third parties to the Moving Towards Atlantic Limited. i. Will they succeed in claiming it back from the freight forwarder? ii. Describe in brief citing the applicable clause
3.As the case is sub judice, some bulk of materials worth $125,000 is still under the general and particular lien of the forwarder, which they intend to sale via an auction to recover its costs and expenses. On 15 th September, 2022 Moving Towards Atlantic Limited served the notice of its right to Lambert Oils Limited by Canada Post and also via on the official email of the legal department of the Lambert Oils. When at the earliest Moving Towards Atlantic can sale the materials? Only date ?
4. The forwarder, Moving Towards Atlantic Limited has recovered $113,500 via a private sale of the material under dispute, which was worth $125,000 as per commercial invoice. Assuming the amount under litigation to be $150,000, for which they served another notice to the Lambert Oils Limited, is Lambert Oils Limited still liable to pay the amount to the Moving Towards Atlantic. If yes, how much? (A) No, as the forwarder choose to sale the material to recover the dues. (B) No, as the forwarder did not wait for the outcome of the court verdict. (C) Yes, $150,000 (D) Yes, $125,000 (E) Yes, $113,500 (F) Yes, $36,500 (G) Yes, $25,000 (I) Yes, $11,500