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 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.
Strategy Applied
The strategy focused on leveraging the legal advantages of the discharge port in Uruguay, whose regulations favoured 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.
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.
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.
