A Toronto based freight forwarding company Moving Towards Atlantic Limited has signed a contract with New Brunswick based Irvings Oils & Gas Incorporation to move bulk of steel and iron coils imported from Jamshedpur to their factory based in Saint John.

The terms and conditions stipulates that the freight forwarder will be responsible for arranging the transportation of the materials from the manufacturing facilities of the exporter to the Mundra Port in Kutch District via railways under a concessional fee arrangement with the Rail authorities as the freight forwarder is redeeming its GST and tax rebates credited to its Indian subsidiary company. The rate mentioned under the contract for this long railway route was a concessional rail cargo fee of $675 per tonne of the iron and steels coils.

Both the parties to the contract fulfilled their underlying commitments duly and contract was executed well in time.

Meanwhile purchasing and logistics manager of Irvings Oil and Gas Inc Mr Travis recommended services of Moving Towards Atlantic Limited to one of their suppliers energy company Lambert Oils Limited based in Calgary, Alberta. Lambert signed the contract with the same freight forwarder under the impression that they will also avail the same concessional rail cargo fee, however the actual cargo transport fee they noticed in their invoice was $1,000 per tonne.

This makes a contract violation for Lambert and they sued the forwarder company claiming the compensation of $325,000 for one thousand tonnes of the cargo they transported from the exporters manufacturing premises to the seaport.

Questions 1

Citing the applicable STC clauses, clarify your understanding of the situation and mention clearly whether the suit is admissible and tenable under the law? (Not more than 100 words).

Questions 2

Continuing from the case in hand, Lambert Oils Limited also claimed back the customary allowances, profits on foreign exchange paid by the carrier and third parties to the Moving Towards Atlantic Limited.

Will they succeed in claiming it back from the freight forwarder?

Describe in brief citing the applicable clause (Not more than 50 words).