Can an unpaid carrier refuse to deliver goods in its possession?
French law provides a particular form of protection.
A right connected with the goods held
Article 2286 of the French Civil Code allows, in particular, a party whose unpaid claim arises from the contract requiring it to deliver a thing to retain that thing until payment.
In transport matters, Article L. 133-7 of the French Commercial Code also grants the carrier a preferential right over the value of the goods carried and the related documents.
This preferential right covers, in particular, freight charges, certain ancillary services, immobilisation costs, expenses incurred in the goods’ interests and certain customs duties and charges.
It may also secure claims arising from earlier carriage operations.
Can goods be retained for an earlier invoice?
Not in every case.
Where the claim arises from an earlier operation, Article L. 133-7 requires the owner of the goods currently retained to have been involved in that operation.
The French Court of Cassation reiterated this on 27 June 2006 : the carrier cannot simply rely on earlier unpaid invoices without establishing that the owner of the goods retained was involved in the corresponding carriage operations.
Before retaining goods, the claim relied on, ownership of the goods and the operations in which each party participated must therefore be identified precisely.
This regime must be distinguished from the freight forwarder’s right of retention.
Does an unpaid invoice actually entitle the carrier to retain the goods currently in its possession?
Are your goods being retained, or are you considering exercising a right of retention following non-payment? Contact the firm.