AIR FREIGHT RULING ESTABLISHES IMPORTANT PRECEDENT

Schenker Ltd v Negocios Europa Ltd. 

Myton Law were pleased to be successful in the ground breaking judgment of the London Mercantile Court. In a trial of a preliminary issue, the Court judgment established that the English common law precedent against ‘set off’ in freight matters applies not only to goods moved by sea and road, but also by air.

There was no previous English authority directly on this point.

Commenting on the outcome, John Habergham of Myton Law said, “We are very pleased to achieve this outcome for our client. The ruling will be of considerable interest to all air freight and freight forwarding providers and users as it clarifies the point for future air freight cases.”

The case highlighted the rationale behind the rule against set off for freight, which has long been viewed as having positive benefits for both carriers and forwarders and their customers in that it ensures prompt payment to protect cash flow so carriers are not disadvantaged in providing credit, as opposed to demanding cash up front.