Absolute Defenses – Authority Of Law

Here is another great explanation of a complicated insurance topic from our own Bob Milsop.

This is the second in a series on Absolute Defenses we started last week.  Here he explains exactly what is meant by “Authority Of Law.”

Common Carrier Liability

Absolute Defenses

Authority of Law

While a common carrier is held to the highest standard of care – that of a “virtual insurer” of the goods, he is not expected to defy seizure under legal process or confiscation for the public good [food, blankets, clothing, drugs and pharmaceuticals, etc.] following a natural disaster by public authority.

Generally, shipments will frequently be seized or impounded for one or more of the following reasons:

● counterfeit [usually imported] merchandise

● as evidence following theft or other crime

● part of an illicit drug seizure

The law appears clear that once property is taken from the carrier’s custody by authority of law [whether by actual or apparent authority], the carrier has a duty to immediately contact the beneficial owner and advising details and circumstances.

So if the government seizes something that you are transporting you’re off the hook!

For anything else leave us a comment or head over to Wolpert.com.

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Published in: on January 7, 2010 at 10:50 pm  Leave a Comment  

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