Counterfeit batteries

A UK ship agent inadvertently delivered a container of brand name batteries without taking the original bill of lading in exchange. After two weeks of constant pressure from the ship agent to provide the original bill of lading, the receiver returned the container of batteries to the port, claiming that the batteries were fakes. On the other hand, the shipper in the Far East claimed that he had shipped the genuine article and that the receiver had substituted fakes during the two weeks he had had the container in his custody. Although the Club and its Member suspected that the shipper was lying, this was impossible to prove and the Line and its agent faced a claim from the shipper of US$200,000. There was also a very real danger that the court would give the shipper the benefit of the doubt. However, ITIC's local correspondent obtained evidence that the shipper had recently imported an identical consignment of batteries from a factory in China well known for counterfeiting brand name batteries. Armed with this evidence the claim was settled for the more reasonable amount of US$30,000.