An enormous copper shipment of nearly 49.9 tonnes mysteriously disappeared during its journey from the UAE to India, leaving the driver accountable for the lost cargo.
This incident led the owning company to claim compensation from its insurer, which swiftly paid Dh1.67 million. Subsequently, the company took legal action against the transport firms and the missing driver, eventually achieving a favorable verdict from Dubai’s courts.
The case began when a copper rod manufacturing company arranged for the shipment to be delivered to its clients in India through contracted shipping and transport services. Unexpectedly, the entire shipment vanished during transit, and the driver disappeared, causing immediate and significant financial setbacks for the manufacturer.
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The manufacturer filed an insurance claim, receiving compensation of Dh1.67 million as per the policy. Following this, they initiated legal proceedings against the transport companies and the runaway driver to recover the compensation plus statutory interest.
The Dubai Court of First Instance ruled in favor of the manufacturer, holding all defendants jointly accountable for the compensation with 5% interest, along with legal fees and expenses.
The transport companies appealed, each presenting different arguments. One claimed its responsibility ceased at a specific shipment stage, while the other contended the cargo never existed, citing insufficient documentation to prove the copper was loaded. The second company also referenced an arbitration clause for settling disputes via the Dubai International Financial Centre courts and new maritime laws limiting carrier liability.
After reviewing the appeals, the Court of Appeal determined that evidence from the public prosecution, incident reports, and insurer documentation was sufficient to establish liability. The court stressed that the driver was a central figure in the loss after leaving the country and abandoning the shipment.
The Court of Appeal rejected both appeals, upholding the initial ruling that the defendants must pay the compensation, interest, and all related legal costs.
