Bill of Lading disputes represent one of the most complex and common categories of maritime law in Georgia. Since a Bill of Lading (B/L) simultaneously serves as a contract of carriage, a receipt for goods, and a document of title, any inaccuracy or breach of obligation leads to multi-layered legal disputes. In Georgian ports (Poti, Batumi), cases frequently arise where cargo release is delayed, goods are delivered to the wrong recipient, or disputes occur regarding the condition of the cargo. Such disputes require immediate intervention because delaying cargo in port is associated with astronomical costs (demurrage, storage). This service involves aggressive defense of the client's interests in court or arbitration during any conflict arising from a Bill of Lading.
What Does the Bill of Lading Disputes Service Cover?
Specialists on our platform offer comprehensive legal support in resolving B/L-related conflicts:
- Challenging Wrongful Delivery: Disputes with a carrier who released cargo without presentation of the original Bill of Lading (Misdelivery claims).
- Compensation Claims: Demanding compensation for cargo damage or shortage based on the terms of the Bill of Lading.
- Disputes over "Clean" vs. "Claused" Bills: Challenging baseless clauses inserted by the carrier in the B/L, which hinder the encashment of letters of credit.
- Vessel Arrest: Arresting a vessel in Georgian ports as a security measure to satisfy a claim arising from a Bill of Lading.
- Disputes involving Letters of Indemnity (LOI): Conflicts arising from the use of a letter of guarantee instead of an original Bill of Lading.
Common Scenarios and Subjects of Dispute
In practice, Bill of Lading disputes often develop under the following scenarios:
- Disappearance of Cargo: The consignee arrives at the port with the original B/L, only to find that the carrier has already released the cargo to another party based on a forged document or just an LOI.
- Antedating: The shipper and carrier agree to change the date of cargo receipt in the B/L (backdating) so the shipper can meet letter of credit terms, which subsequently becomes the subject of a fraud dispute.
- Freight Disputes: The B/L states "Freight Prepaid," but in reality, the carrier has not received payment and withholds the cargo at the destination port, causing a dispute with the consignee.
- Cargo Damage in Transit: The carrier claims the cargo was loaded in damaged condition, while the B/L is "Clean," leading to issues regarding the burden of proof.
- Identification Issues: Disputes over who is the authorized receiver when the B/L is "To Order" and the chain of endorsements is unclear.
Georgian Legal Framework
Bill of Lading disputes are regulated by the Maritime Code of Georgia, which is largely based on international standards (Hague-Visby Rules). The Code defines the limits and conditions of the carrier's liability. The Civil Code of Georgia is important regarding the law of obligations, as is the Law on Private International Law, since it is often necessary to determine which country's law applies to the B/L. Litigation proceedings follow the Civil Procedure Code of Georgia, which provides special mechanisms for securing maritime claims.
In judicial practice, it is crucial to determine whether the Bill of Lading contains an arbitration clause. If the B/L points to London or other international arbitration, the role of a Georgian lawyer is often expressed in implementing local security measures (vessel arrest) and assisting foreign partners.
Service Process: What to Expect
When a dispute begins, the lawyer first analyzes the terms on the back of the B/L. Then, evidence collection takes place: surveyor reports, port tally records, and correspondence. The specialist will assess the prospect—whether litigation is worth it or settlement is better. If necessary, the lawyer will petition the court for vessel arrest, which is the most effective leverage against a carrier. Throughout the process, you will have a full understanding of the risks and expected outcomes.
Why Choose Legal.ge?
Bill of Lading disputes require narrow specialization, as a mistake can lead to millions of dollars in losses. Legal.ge connects you with lawyers who have real experience in maritime disputes and understand the specifics of P&I Clubs. Do not risk it with a generalist lawyer—choose an industry expert on Legal.ge and protect your cargo professionally.
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