When high-value goods are lost, the invoice amount does not necessarily correspond to the compensation owed by the carrier.
The principle of limited compensation
For international road carriage, Article 23 of the CMR Convention provides, in the event of total or partial loss, for a limit of 8.33 Special Drawing Rights (SDRs) per kilogram of gross weight lost.
The SDR is a unit of account defined by the International Monetary Fund. Its value fluctuates: compensation therefore requires determining the weight actually lost and converting the amount into the applicable currency.
This rule can produce substantial differences for lightweight but expensive goods, such as electronics, components, luxury products, raw materials or specialist equipment.
Implications for the claim
For damage, a different mechanism applies. Article 25 of the CMR provides for compensation reflecting the reduction in the goods’ value, itself subject to the Convention’s limits.
The 8.33 SDR limit should not, however, be applied mechanically. A declaration of value or a declaration of special interest in delivery can change the applicable limits.
Finally, Article 29 of the CMR deprives the carrier of the benefit of liability limits where the damage results from wilful misconduct or fault regarded as equivalent to wilful misconduct. Under French law, Article L. 133-8 of the French Commercial Code uses the standard of inexcusable fault under French law.
Compensation can therefore be calculated only after the applicable regime, the precise nature of the damage and the circumstances in which it occurred have been determined.
Does the 8.33 SDR limit actually apply to the incident, or is there a basis for disapplying or increasing it?
If your matter concerns the compensation limits applicable to carriage under the CMR, contact the firm, which will get back to you to discuss your situation.