Question

Are punitive damages the right approach to addressing transshipments? Explain.

Answer 1

In longer routes, shipments halt at an intermediate stop before reaching to the final destination. This is called Transshipment. At times, even the means of transport is changed during the process. Although a legal process, this shipment may often be used for loading illegal or smuggled goods during the ‘transfer of materials’ handling phase and very conveniently moved to its desired location. Therefore there is a risk of gaining the advantage of the loophole in the process and dealing with under-the-table acts of illegal transportation of goods as well. Therefore, I feel a strict approach is certainly required in the form of punitive damages in such cases.

In order to prove the punitive charges which is a harsh charge upon the defendants, the Plaintiffs need to prove that that the product sold in the market was unreasonably dangerous and in the knowledge of the Defendants about its defect. Here the defect shall be the knowledge the transporter manager possess about the illegal trading or supply of goods.