Plaintiff original container owner owned 16 oil tank containers, the original purchase price was about USD265K as per BV’s records. Those containers lay on the ground of Defendant freight forwarding company. 14 of them were somehow sold by Defendant logistics company to Defendant MENG. The sale was done by the logistics company’s former employee Third Party JIN. MENG paid for the 14 containers and resold them to Defendant ZOU, the legal representative of the freight forwarding company. Later, the original container owner demanded Defendants to return all 16 containers and compensate its loss of earnings. The Defendants failed to reply, and the original container owner commenced lawsuit. During the trial, the market value of the 14 containers were assessed to be about USD115K by a local evaluator. The court held that there was no evidence to show MENG or ZOU committed any gross negligence in the course of sale or resale of the 14 containers, so they could be deemed as bona fide purchasers and ZOU was the final new owner of them; the logistics company should compensate the market value of the 14 containers, USD115K, as well as the loss of earnings suffered by the original container owner; according to the market standards, the actual loss of earnings would exceed the 14 containers’ original purchase price, so USD265K could be reasonably regarded as the cap of recoverable loss of earnings.

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BULK HAUL LIMITED v. Jiangsu Zhongan Logistics Co., Ltd. et al.

  • Martin Davies,
  • Jiang Lin

摘要

Plaintiff original container owner owned 16 oil tank containers, the original purchase price was about USD265K as per BV’s records. Those containers lay on the ground of Defendant freight forwarding company. 14 of them were somehow sold by Defendant logistics company to Defendant MENG. The sale was done by the logistics company’s former employee Third Party JIN. MENG paid for the 14 containers and resold them to Defendant ZOU, the legal representative of the freight forwarding company. Later, the original container owner demanded Defendants to return all 16 containers and compensate its loss of earnings. The Defendants failed to reply, and the original container owner commenced lawsuit. During the trial, the market value of the 14 containers were assessed to be about USD115K by a local evaluator. The court held that there was no evidence to show MENG or ZOU committed any gross negligence in the course of sale or resale of the 14 containers, so they could be deemed as bona fide purchasers and ZOU was the final new owner of them; the logistics company should compensate the market value of the 14 containers, USD115K, as well as the loss of earnings suffered by the original container owner; according to the market standards, the actual loss of earnings would exceed the 14 containers’ original purchase price, so USD265K could be reasonably regarded as the cap of recoverable loss of earnings.