Liens — a powerful remedy, but there are dangers too
By Jane Hobbs
The exercise of a contractual lien can be an incredibly powerful and effective weapon for an unpaid freight forwarder to use and can have disastrous results for cargo interests. But there are dangers for those who get it wrong.
It is usual to find a lien clause in contracts for the carriage of goods and in freight-forwarding contracts. A good example is found in the British International Freight Association (BIFA) Standard Trading Conditions.
In essence, the forwarder has a right to detain goods in its possession until it has been paid all sums due from its customer and/or the owner of the goods, whether in respect of that shipment or previous shipments. In addition to the passive right of detention, most lien clauses also entitle the forwarder, on giving a defined period of notice, to sell, dispose of or deal with the goods and to use the proceeds to pay towards the sums due. Cargo interests often pay up to get goods released from a lien…
Click on the link below to read the rest of the Gateley briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Gateley Plc
News from The Lawyer
Briefings from Gateley Plc
Pensions Regulator appears to be encouraging IPs to be more proactive on trustee appointment issues.
Home working can now take place in rented accommodation without threat of eviction.
Analysis from The Lawyer
Gateley bigshots see personal wealth soar on flotation, but face penalties for early exit .
Gateley is to float on the London Stock Exchange, becoming the first UK firm to list itself as a public limited company. But why would a firm would look to float, and what it could mean for the industry?