A shipper is claiming for damaged or lost freight in Ontario — what is the carrier's liability?
For Ontario intra-provincial carriage the uniform conditions of carriage limit liability to a set amount per kilogram unless a higher value was declared, and notice and limitation deadlines are short.
Liability for freight loss or damage in Ontario is governed in the first instance by the bill of lading and the regulated uniform conditions of carriage. The carrier is liable for loss, damage or delay to goods in its possession, subject to defences including act of God, inherent vice, defective packing by the shipper, and the shipper's own act or default.
Critically, liability is capped at a statutory amount per kilogram of the lost or damaged goods unless the shipper declared a higher value on the bill of lading and paid for it. That cap frequently produces a recovery far below the invoice value of the cargo.
The deadlines are aggressive: written notice of claim and the commencement of any action must occur within the periods in the conditions of carriage. Cross-border movements may instead be governed by the Carmack Amendment or the CMR, which change the analysis.
Source: Highway Traffic Act, R.S.O. 1990, c. H.8 · O. Reg. 643/05 (Uniform Conditions of Carriage)
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