When Precision Weighs More
In maritime transport, weight discrepancies in bulk cargo can lead to complex disputes. This case demonstrates how a legal strategy, based on a deep understanding of local legislation, helped recover 50% of a claim for cargo shortage in Uruguay, avoiding a lengthy litigation process.
The Case
A bulk cargo of granular muriate of potash, shipped from Canada to Uruguay, experienced a significant discrepancy upon discharge: 25% less cargo than what was recorded at the point of origin. This shortage, confirmed by Uruguay’s official shore scales (more accurate than the vessel’s draft figures), triggered a legal dispute.
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Strategy Applied
The strategy focused on leveraging the legal advantages of the discharge port in Uruguay, whose regulations favored the claimant:
●?Official weighing: Shore scales provide greater precision and legal weight.
●?Strict carrier liability: No need to prove negligence.
●?Local jurisdiction: Imposes costs and complications for the opposing party when litigating outside their comfort zone.
Additionally, the potential for a judicial proceeding in Uruguay was crucial in applying pressure to accelerate the negotiation process.
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Development and Resolution
Throughout the negotiations, we faced firm resistance from one of the toughest P&I clubs in the market, which requested extensive documentation, often unnecessary at this stage. Persistent legal and technical arguments, backed by experience in similar cases, allowed us to maintain a strong and defensive position.
Ultimately, an extrajudicial settlement was reached, recovering 50% of the claimed amount, therefore avoiding the costs and delays of litigation.
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Challenges and Client Management
The client, though impatient with the delays in responses from the opposing party, appreciated the outcome. We maintained constant communication to manage their expectations, explaining the complexity and time typically required for such disputes.
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Conclusion
This case highlights the importance of a well-founded legal strategy tailored to the local context. Facing a formidable opponent and securing a favourable result demonstrates the effectiveness of combining legal knowledge with firm, persistent negotiation. Once again, precision and strategy proved more important than the initial discrepancy.
Lawyer
4 周Very informative! Well done!
Co-Founder & General Manager @ 100 EYES | Experienced Business Leader, MBA/Dip CII/ 30+ years work experience
4 周Well done