Cargo firm to pay $14m for goods damage

DUBAI — The Dubai Court of Cassation has upheld the verdicts of the Court of First Instance and the Court of Appeal in ordering Hyundai Merchant Marine Company Limited to pay $14,430,000 besides the interest dues to Hala Construction Material Company.



By Mohsen Rashid

Published: Fri 10 Jun 2005, 11:34 AM

Last updated: Thu 2 Apr 2015, 7:57 PM

The case history dates back to 2002 when Hala Construction Company signed a contract with the Hyundai Merchant Marine Company Limited for shipment of cargo of plywood stocks from Bali port in Indonesia to Dubai port. The Hyundai Merchant Marine Company Limited lifted the cargo as per four bills of lading issued on June 25, 2002 and July 15, 2002. The bills carried the name of the addressee, which was the Union Bank of Sharjah. The bank endorsed the bills of lading, which allowed Hala Company to receive the cargo of plywood. The Hyundai Merchant Marine Company Limited, however, failed to deliver the cargo in good condition as per the contract.

Following the violation of the contract, Hala hired the services of an authenticated inspection company to give its legal opinion on the condition of the cargo. The inspection company, after verifying the condition of the cargo, issued a report stating that the cargo was in bad condition and was not delivered in accordance with the contract. This had led to Hala suffering massive losses.

Subsequently, Hala approached the Court of First Instance, which gave its verdict asking Hyundai Merchant Marine Company Limited to pay Dh53,150,000. Hyundai Merchant Marine Company Limited then approached the Court of Appeal, and when that court upheld the lower court's judgment, went to the Court of Cassation, which also upheld the verdict, asking the Company to pay $14,430,000 to Hala.


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