American President Lines, Ltd. v. Pannill Veneer Co.
T-1706-94
Jerome A.C.J.
17/9/97
4 pp.
Action for ocean freight for carriage of defendant's goods-Defendant paying freight forwarder, but plaintiff never paid-Action dismissed-C.P. Ships v. Industries Lyon Corduroys Ltée, [1983] 1 F.C. 736 (T.D.) setting out exceptions to rule where debtor, instead of paying creditor, choosing to pay third party, does so at own peril-Bills of lading sent to freight forwarder, and when payment not forthcoming, plaintiff contacting freight forwarder requesting payment of ocean freight-No evidence plaintiff ever expected payment directly from defendant-Normal practice to look to freight forwarding agent for payment of charges-Not until freight forwarder's cheques to plaintiff returned by bank did plaintiff attempt to collect shipping charges from defendant-Reasonable expectation of all parties that freight forwarder would bill defendant for shipping charges, and that defendant would pay freight forwarder who would pay plaintiff-Plaintiff's own conduct leaving little doubt expected payment from freight forwarder-Payments by defendant to freight forwarder constituting payment to plaintiffs.