Hilary Chu successfully defended a claim brought against Federal Express Canada Corporation (“FedEx”) by a commercial shipping client. After a one-day trial in the Provincial Court, the Court dismissed the claim in its entirety and ordered the unsuccessful claimant to pay a penalty award to FedEx.

In Garcon Model Ltd. v. Federal Express Canada Corporation (May 7, 2024), Vancouver C-2373578 (BCPC), the claimant sought compensation from FedEx after a package destined for Puerto Vallarta was held up at Mexican customs and subsequently destroyed. The claimant submitted a claim to FedEx, and FedEx compensated the claimant for the shipment in accordance with its Terms and Conditions. FedEx also credited the claimant’s freight charges in connection with the shipment. Despite having already received compensation from FedEx, the claimant filed a Notice of Claim, alleging that FedEx breached its obligations to the claimant and was negligent.

At trial, the judge agreed with FedEx’s argument that it was a full answer to the claim that the claimant had previously accepted payment from FedEx in connection with the shipment, based on the applicable Terms and Conditions. The judge disagreed that FedEx had breached its obligations to the claimant and found that, if there was a breach of contract, it may have been by the claimant. In that regard, the claimant’s representative admitted on cross-examination that the claimant had declared a “notional or imaginary,” instead of actual, value of the shipment. The judge found that the claimant did not act prudently. The judge further agreed with FedEx that the claimant had failed to establish negligence on FedEx’s part and that, even if it had, the Court would have found that the claimant was contributorily negligent.

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