Mediterranean Shipping Co SA v BPB Westroc Inc - Fed Court (Trial Div) (Lafrenière P) - 31 July 2003

Freight - Shipper paying freight to freight forwarder but freight forwarder failing to pass payment on to carrier - Whether shipper liable to pay carrier - Whether carrier's conduct induced shipper to conclude that forwarder was authorised to receive freight on behalf of carrier

The plaintiff carrier ("MSC") sought to recover from the defendant shipper ("Westroc") $65,187.62 freight for the carriage of Westroc's goods. Westroc denied liability on the ground that the freight had already been paid to JT Knight Export Services Inc, a freight forwarder that Westroc understood had the authority to receive payment on MSC's behalf.