Globalink Transportation and Logistics Worldwide LLP v DHL Project & Chartering Ltd [2019] EWHC 225 (Comm) (19 February 2019)

Globalink Transportation and Logistics Worldwide LLP v DHL Project & Chartering Ltd [2019] EWHC 225 (Comm) (19 February 2019)

The court held that DHL's cross-claim is well arguable and has a real prospect of success, and that the no set-off against freight rule does not extend to freight forwarding contracts such as the one between Globalink and DHL. Therefore, DHL's cross-claim can operate as a defence by way of set-off, except in relation to sums that are demonstrably freight properly so called and paid by Globalink to carriers, for which a conditional order was made. The force majeure and limitation of liability arguments raised by Globalink were found to be arguable but not determinative at this stage.

Citation
[2019] EWHC 225 (Comm)
Parties
Claimant: Globalink Transportation and Logistics Worldwide LLP; Defendant: DHL Project & Chartering Limited
Jurisdiction
England and Wales
Judgment Date
19 February 2019
Procedural Posture
Commercial Court Claim for Summary Judgment / Summary Judgment Application
Outcome
Summary judgment refused except for a conditional order as to part of the claim.
Legal Topics
Summary Judgment, Set Off, Freight Forwarding, Force Majeure, Limitation of Liability, No Set Off Rule, Breach of Contract
Contract Law Commercial Law Transport Law Summary Judgment Set Off Freight Forwarding Force Majeure Limitation of Liability +2 more

Case Brief

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Parties

Globalink Transportation and Logistics Worldwide LLP

Claimant

DHL Project & Chartering Limited

Defendant

Procedural Posture

Commercial Court Claim for Summary Judgment / Summary Judgment Application

Legal Issues

  1. 1 Whether DHL's counterclaim has a real prospect of success
  2. 2 Whether DHL's counterclaim can operate as a defence by way of set-off against Globalink's claim
  3. 3 Whether the no set-off against freight rule applies to freight forwarding contracts

Ratio Decidendi

The court held that DHL's cross-claim is well arguable and has a real prospect of success, and that the no set-off against freight rule does not extend to freight forwarding contracts such as the one between Globalink and DHL. Therefore, DHL's cross-claim can operate as a defence by way of set-off, except in relation to sums that are demonstrably freight properly so called and paid by Globalink to carriers, for which a conditional order was made. The force majeure and limitation of liability arguments raised by Globalink were found to be arguable but not determinative at this stage.

Court Disposition

Summary judgment refused except for a conditional order as to part of the claim.

Orders

  • Globalink must pay $113,000 into court as a condition of defending the claim as to that sum.
  • No summary judgment for the balance of the claim; the matter proceeds to trial.