Background

• Incident: On November 22, 2021, a load of Core-Mark’s cargo (cigarettes worth $534,451.78) was stolen during transit by Direct Integrated.
• Primary Legal Question: Is Direct Integrated liable for the full wholesale value of the stolen cargo, limited to $38,894.00, or capped at $250,000 due to alleged insurance obligations?

Key Agreements

• Agreements in Place:
  • Transportation Services Agreement: Includes an insurance clause for $250,000 cargo coverage.
  • Rate Agreement: Clauses not as specific; uncertain applicability.
• Court’s Position: Assumes the Transportation Services Agreement applies, given its detailed insurance requirements.

Legal Analysis

• Insurance and Liability:
  • Clause 15.1(c) of the Transportation Services Agreement mandates $250,000 cargo insurance but does not name Core-Mark as an additional insured.
  • Alberta’s Bill of Lading and Conditions of Carriage Regulation (Alta Reg 313/2002) limits liability to $4.41 per kilogram unless a higher value is declared on the bill of lading.
  • Core-Mark did not declare a higher value, limiting recovery based on weight.

Decision

• Ruling: The court applied statutory limits, capping Direct Integrated's liability at $38,894.00.
• Rationale: Without a higher value declared by Core-Mark, statutory liability limits under Alberta law apply.

Additional Notes

• Costs: Costs generally follow the judgment unless otherwise determined within 60 days.

This decision underscores the importance of explicitly declaring the value of goods in transportation agreements to override statutory liability limits.