CORAR v. FREIGHTLINERS

CORAR v. FREIGHTLINERS

The Supreme Court held that FREIGHTLINERS failed to comply with customs procedures for the 05/03/2008 accident, so no indemnity was due for that event. For the 16/03/2008 accident, only the value of the actually damaged goods (36 bags) was compensable, not the devalued but sold goods. Interest at 25% was awarded on the principal sum, but claims for travel expenses and legal fees were denied as the evidence was insufficient or the party had partially lost.

Citation
RCOMA 0061/09/CS
Parties
Appellant: CORAR; Respondent: FREIGHTLINERS
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
13 May 2011
Case Number
RCOMA 0061/09/CS
Procedural Posture
Commercial Insurance Dispute / Supreme Court Appeal
Outcome
Partially allowed appeal; judgment varied in part.
Legal Topics
Cross Border Transport, Insurance Indemnity, Customs Clearance, Transbordement Procedures, Damages Calculation, Interest on Judgment Debt
Source Language
rw, en
Insurance Law Customs Law Contract Law Cross Border Transport Insurance Indemnity Customs Clearance Transbordement Procedures Damages Calculation +1 more

Case Brief

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Parties

CORAR

Appellant

FREIGHTLINERS

Respondent

Procedural Posture

Commercial Insurance Dispute / Supreme Court Appeal

Legal Issues

  1. 1 Whether customs and transbordement procedures were followed for the accident of 05/03/2008 and their impact on insurance liability
  2. 2 Whether the quantum of damages for the accident of 16/03/2008 was correctly determined
  3. 3 Whether the parties are entitled to additional damages, interest, and legal fees

Ratio Decidendi

The Supreme Court held that FREIGHTLINERS failed to comply with customs procedures for the 05/03/2008 accident, so no indemnity was due for that event. For the 16/03/2008 accident, only the value of the actually damaged goods (36 bags) was compensable, not the devalued but sold goods. Interest at 25% was awarded on the principal sum, but claims for travel expenses and legal fees were denied as the evidence was insufficient or the party had partially lost.

Court Disposition

Partially allowed appeal; judgment varied in part.

Orders

  • CORAR to pay FREIGHTLINERS 4,556,309 Frw within 8 days, enforceable by seizure if unpaid.
  • CORAR to pay 4% statutory surcharge (182,252 Frw) within 8 days, enforceable by seizure if unpaid.