Most people at one time in their life have moved their household contents from one home to another, whether it be in the same city or in an entirely new Province or Territory. Some have had the misfortune of receiving their contents in a damaged condition or worse, not receiving their goods at all. The owner of the household goods will inevitably turn to the moving/trucking companies for compensation. As such, moving companies will want to protect themselves from maximum liability through the use of limitation of liability provisions.
This paper will discuss the differences involved in carrying household goods from other cargo, and how a carrier can protect itself from maximum liability.
Motor truck transportation of household goods is governed separately by each of the 10 provinces and 3 territories in Canada. In British Columbia, the Specified Conditions of Carriage Household Goods are contained in the same regulation of the Motor Vehicle Act as commercial cargo (the “Regulation”). These Specified Conditions of Carriage Household Goods act as uniform conditions that are to be incorporated into every bill of lading in which the Regulation applies to. Like regular freight, in order for a carrier to limit its liability, the carrier must strictly comply with the Regulation.
Liability
Like a carrier of freight, a carrier of household goods is deemed to be liable for loss or damage of goods subject to the same set of defences as a freight carrier, which are act of God, the Queen’s or public enemies, riots, strikes, a defect or inherent vice in the goods or acts of default of the shipper or owner. The carrier of household goods however has some additional exceptions from liability than a carrier of commercial cargo has.
Unless the loss or damage is caused by the negligence of the carrier, carriers of household goods are not liable for the following:
- damage to fragile articles that are not packed and unpacked by the contracting carrier or by that carrier’s agent or employee(s);
- damage to the mechanical, electronic or other operations of radios, phonographs, clocks, appliances, musical instruments and other equipment, irrespective of who packed or unpacked such articles, unless servicing and preparation was performed by the contracting carrier or by that carrier’s agent or employee(s);
- deterioration of or damage to perishable food, plants or pets; or
- loss of contents of consignor packed articles, unless the containers used are opened for the carrier’s inspection and articles are listed on this bill of lading and receipted for by the carrier.
The burden of proving an absence of negligence is on the carrier.
In a situation where damage or loss occurs to a portion of a complete set of goods, the carrier is only liable for repair or recovering the lost or damaged piece or pieces. We take this to mean that if three out of six dining room chairs are damaged or lost, the carrier is only liable for those three chairs and not for the entire set.
Another exception to liability of the carrier is with respect to damage or loss at the place of pick-up and delivery. If the consignor or consignor’s agent is not present at the place of pick up, the carrier is not liable for damage at that place. Similarly, the carrier is not liable for damage when the consignee is not present at the place of delivery to give receipt of the goods.
A carrier of household goods may also be liable for some expenses associated with delay. When carrying household goods, the carrier has an obligation to provide the consignor with a date and time period in which delivery will be made. Failure by the carrier to deliver within that time frame specified on the face of the bill of lading will render the carrier liable for reasonable food and lodging expenses incurred by the consignee.
Like regular freight, there are notice provisions contained in Specified Conditions of Carriage Household Goods, which may have the effect of extinguishing an owner’s claim if no notice is given during the notice period.
Limitation of Liability – 60 Cents vs. $2 per Pound
Like freight, “common carriers” carrying household goods are subject to a “weight limit defence”. In other words, the Regulation allows the carrier to limit its liability based on the weight of the cargo to 60 cents per pound unless the shipper of the goods declares a different value.
Clauses 9 and 10 of the Specified Conditions of Carriage Household Goods provide for the valuation of cargo and for limitation amounts:
9: Subject to Article 10, the amount of any loss or damage of which the carrier is liable, whether or not the loss or damage results from negligence of the carrier or the carrier’s employees or agents, is to be computed on the basis of the value of the lost or damaged articles (s) at the time and place of shipment.
10: (a) The amount of any loss or damage computed under Article 9 must not exceed the greater of (i) the value declared by the shipper, or (ii) $ 4.41 per kilogram ($2.00 per pound) computed on the total weight of the shipment, provided that if the consignor, in writing releases the shipment to a value of $1.32 per kilogram (60 cents per pound) per article or less the amount of any loss or damage computed under Article 9 must not exceed such lower amount.
10 (b) If paragraph (a) (i) or (ii) applies, additional charges to cover the additional coverage over $1.32 per kilograms per article must be paid by the consignor.
What Steps Must a Carrier Take to Limit its Liability?
The majority of the steps to take in order to properly issue a bill of lading and related documents is generally the same as with other freight in British Columbia and must be strictly adhered to.
One major difference with household goods is the fact that an inventory of the goods must be attached to the bill of lading. The inventory will list every item being shipped.
Another interesting difference is that the bill of lading issued for household goods must contain a space to indicate date or time period agreed on for delivery. The reason for this term is the fact that the carrier will be liable to the consignee for delay and the consignee will be liable to the carrier for certain charges if the consignee fails to accept delivery when tendered within the specified timeframe.
Below is a chart which illustrates the steps needed when carrying commercial cargo as compared to carriage of household goods.
| Commercial Cargo
37.39 (1) Subject to this Part, if freight is accepted for shipment by or on behalf of a carrier who operates a business vehicle within the meaning of section 237 (a) or (c) of the Act, the carrier must, at the time of that acceptance, issue or cause to be issued a bill of lading in accordance with the following requirements: (a) a bill of lading issued under this subsection must show the following: (i) the name and address of the consignor (shipper); (ii) the date of the shipment; (iii) the originating point of the shipment; (iv) the name of the originating carrier; (v) the names of connecting carriers, if any; (vi) the name and address of the consignee (receiver of goods); (vii) the destination of the shipment (if different from the address of the consignee); (viii) particulars of the goods in the shipment, including weight and description; (b) a bill of lading issued under this subsection must also contain the following: (i) a provision stipulating whether the goods are received in apparent good order and condition, or otherwise; (ii) a space to show the declared value of the shipment; (iii) a space to indicate whether transportation charges are prepaid or collect; (iv) a space in which to note any special agreement between the consignor and the carrier; (v) a statement in conspicuous form to indicate (if such is the case) that the carrier’s liability is limited by a term or condition of the carrier’s applicable schedule of rates or by any other agreement with the consignor; (vi) a statement of notice of claim as provided for by Article 12 of the Specified Conditions of Carriage set out in paragraph (c); (c) a bill of lading issued under this subsection must be signed by the consignor or the consignor’s agent and the originating carrier or that carrier’s agent and must contain or incorporate by reference all the following conditions of carriage: |
Household Goods
37.39 (2) Subject to this Part, if household goods are accepted for shipment by or on behalf of a carrier who operates a business vehicle within the meaning of section 237 (a) or (c) of the Act, the carrier must, at the time of that acceptance, issue or cause to be issued a bill of lading in accordance with the following requirements: (a) a bill of lading issued under this subsection must show the following: (i) the name and address of the consignor (shipper); (ii) the date of the shipment; (iii) the originating point of the shipment; (iv) in a conspicuous place, the name of the original contracting carrier and the carrier’s telephone number; (v) the name of connecting carriers, if any; (vi) in a conspicuous place, the name of the destination agent, if different from the original contracting carrier, and that agent’s telephone number; (vii) the name, address and telephone number of the consignee (receiver of goods); (viii) the destination of the shipment; (ix) an inventory of the goods comprising the shipment, which inventory must be attached to, and become part of, the bill of lading; (b) a bill of lading issued under this subsection must also contain the following: (i) a provision stipulating whether the goods are received in apparent good order and condition, except as noted on the inventory; (ii) despite subparagraph (i), a statement in conspicuous form indicating that the signature of the consignee for receipt of goods does not preclude a future claim for loss or damage made within the time limit set out in the bill of lading; (iii) a space to show the declared value of the shipment; (iv) a space or spaces to show the actual amount of freight and all other charges to be collected by the carrier; (v) a statement to indicate that the uniform conditions of carriage apply; (vi) a space or spaces to note any special services or agreements between the contracting parties; (vii) a space to indicate date or time period agreed on for delivery; (viii) a statement in conspicuous form to indicate that the carrier’s liability is limited by a term or condition of carriage; (ix) a space for the signature of the consignor; (c) a bill of lading issued under this subsection must be signed in full by the consignor, or the consignor’s agent, and the original contracting carrier, or the carrier’s agent, and must contain or incorporate by reference all the following conditions of carriage: |
Alberta Conditions of Carriage
In Alberta, the Regulations to the Traffic Safety Act, R.S.A. 2000, c.T-6, provide a set of “Conditions of Carriage” which are similar to the Specified Conditions of Carriage Household Goods prescribed by the British Columbia Regulation: Alta. Reg. 424/86. The Alberta Conditions include a condition which limits the carriers liability to 60 cents per pound. The difference between the legislative schemes is that in Alberta, the Conditions of Carriage are deemed to be included in every contract for the transportation of goods to which the Regulation applies.
Section 9 of the Alberta Regulation specifies the information and terms that are required in the bill of lading. The conditions are similar to those found in British Columbia. Again, the notable differences from other freight is the fact that an inventory is necessary and the limitation amount is 60 cents per pound.
Section 10 provides that every agreement for the transportation of household goods to which section 9 applies is deemed to include those terms and conditions. In other words, failure to comply with section 9 may comprise a breach of the regulations but that does not detract from the limitation on liability imposed on the agreement to transport by the statutory deeming provisions.
Under Alberta Regulation, household goods are defined as property that is moved by persons specializing in the full service relocation of household effects, and includes the following property:
- furniture, appliances and personal effects transported as part of the relocation of a household, including vehicles and boats moved as part of the same household;
- unpacked or uncrated furniture and office equipment transported to an office, store, factory, commercial establishment, museum, hospital or public institution to be used as furnishing therein;
- stock-in-trade moved as part of the relocation of an office, store or commercial establishment;
- objects of art, displays, exhibits, computers and electronic devices that require specialized handling.
Conclusion
In order for carriers to protect themselves from maximum liability when carrying household goods it is important that they ascertain the law that will apply to the contract of carriage and that they ensure that they understand how the Uniform Conditions are incorporated. As you can see from the above, a carrier will be able to limit its liability a lot easier in Alberta than in British Columbia.
The 6 differences between carriage of commercial cargo as compared to household goods include the following:
- additional household good defences regarding fragile articles, damage to electronics, perishable goods foods, plants and animals;
- liability for only the damaged portion of a set (i.e., kitchen chairs);
- additional defences based on presence/absence of shipper/consignee;
- lower limit ($0.60/lb);
- requirements and exposure respecting delay; and
- further steps need to be taken by the carrier to limit liability (i.e. inventory and space indicating date or time period agreed on for delivery).
This article is written by Megan Whittle, former lawyer at Whitelaw Twining