Legal Question in Civil Litigation in New York
freight law
A shipper contracts with a common carrier to carry goods to a consignee. The Bill of Lading (prepared by the shipper) states that the freight is PPD (pre-paid) meaning on the account of the shipper. The goods are delivered to the consignee and the Shipper goes bankrupt. The carrier claims the consignee is liable for the freight charges because they (the carrier) has not been paid. The consignee says they are NOT responsible and that in fact, they paid the funds to the Bankrupt Shipper when they bought the goods...Who is right? Can someone point to the law?
2 Answers from Attorneys
Re: freight law
Take a look at the NY Uniform Commercial Code. The carrier has a right to receive compensation for his services; therefore, he may hold the good until payment is received either from the shipper or the recipient.
Re: freight law
The answer to the situation you describe likely will depend upon the specific facts applicable to the matter, and on the nature of the transaction (i.e., domestic or international) and method of shipment (i.e., ocean freight, air freight, rail, or truck).
The foregoing is not intended as legal advice regarding your matter. Facts and circumstances not disclosed in your brief posting may materially affect your rights. You should consult with a knowledgeable bankruptcy attorney regarding your situation. Please feel free to contact me at 8888678165 if you would like to arrange a consultation. We are New York bankruptcy lawyers experienced in business matters. Please feel free to visit the Frequently Asked Questions at www.starrandstarr.com for additional information.
Best regards,
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
