Third Party NOT in HBL can sue
A Forwarder was sued out of the blue in 9 court cases for misdelivering 14 shipments (respectively from Taicang and Shanghai to Los Angeles) to the consignee without presentation of original HBs/L. The total claim amount involved is USD698,087.20.

The misdelivery was done by the Forwarder’s agent in Los Angeles without the Forwarder’s knowledge. The Forwarder’s agent at first alleged that the cargoes were not misdelivered but being stored in its warehouse. When the Forwarder's transport liability insurer instructed its surveyor to try to arrange survey inspection and investigation to verify the quantity and condition of the cargoes in the warehouse, the Forwarder’s agent became uncooperative, and argued that all the cargoes were disposed of. The transport liability insurer thereafter instructed its Xiamen lawyer to defend the 9 court cases. The plaintiff in these court cases alleged that it was the cargo owner, despite it was neither the shipper nor actual shipper. Up to now, the Forwarder won 5 court cases in the Shanghai Maritime Court (上海海事法院), but pending appeal by the claimant in the Higher People’s Court of Shanghai Municipality (上海市高級人民法院). The remaining 4 court cases in the Wuhan Maritime Court (武漢海事法院) are still in progress.

Lesson: The Forwarder has avoided the huge amount of survey fees and legal costs involved as it got back up by transport liability insurance.