On 16 June 2021, the Supreme Court ruled in favour of TEGOS (formerly TGS Baltic) client AS KEVELT, finding that the sender of temperature-sensitive goods, such as pharmaceuticals, is entitled to expect that the carrier has a contingency plan in place in the event of refrigeration unit failure.
Applying the Convention on the Contract for the International Carriage of Goods by Road (CMR), the Supreme Court found that under Estonian law, gross negligence is equated with intent for the purposes of limitations on a carrier’s liability. Accordingly, a carrier may not limit its liability even where damage has been caused by gross negligence. The Supreme Court clarified that a consignee will, as a general rule, have discharged its burden of proof once it sets out in the statement of claim circumstances that point with sufficient probability to the carrier’s intent or gross negligence.
The Supreme Court provided important guidance in the judgment for carriers of temperature-sensitive goods, such as pharmaceuticals or vaccines. A carrier must have a contingency plan in place to account for, prevent, and address the consequences of typical risks. The carrier must know what steps to take with temperature-sensitive cargo in order to prevent damage arising, for example, in the event of a tyre blowout, a major engine failure, or refrigeration unit failure. Failing this, the carrier should refrain from concluding a contract of carriage for the transportation of temperature-sensitive goods. Supreme Court judgment: https://www.riigikohus.ee/et/lahendid?asjaNr=2-17-18657/141 (in Estonian).
