The Shanghai branch of Huatai Property Insurance Co., Ltd. (hereinafter referred to as "Huatai Insurance Company") insured a shipment of goods, including industrial molds, from Shanghai Zhanxin Industrial Co., Ltd. (hereinafter referred to as "Zhanxin Company"), which were entrusted to Shanghai Shunjun Trading Co., Ltd. (hereinafter referred to as "Shunjun Company") for transportation from Shanghai to Zhangjiagang. Unexpectedly, during the transportation process, an accident occurred causing damage to the goods. After Huatai Insurance Company compensated Zhanxin Company, it filed a lawsuit with the court claiming that it had obtained rights transfer and demanded that the carrier, Shunjun Company, compensate for the loss of RMB 60,010. This claim was recently recognized by the first-instance judgment of the Shanghai Jing'an District People's Court.
In August 2006, Zhanxin Company signed a "Cargo Consignment Agreement" with Shunjun Company, whereby Shunjun Company would act as an agent for Zhanxin Company in transporting goods. Both parties made specific agreements on price and other terms. On January 7, 2007, Zhanxin Company requested Shunjun Company to transport two sets of molds and products, using the vehicle with license plate number沪A96***. On the same day, Huatai Insurance Company and Zhanxin Company signed a "Domestic Waterway and Land Cargo Transportation Insurance Policy," agreeing that Huatai Insurance Company would insure two plastic molds belonging to Zhanxin Company. The insurance type was comprehensive insurance, transported from Shanghai to Zhangjiagang, loaded onto the vehicle with license plate number沪AG0***, with departure time set for January 7, 2007. Later, due to the inability of vehicle沪AG0***to depart, upon Huatai Insurance Company's agreement, the transportation was changed to vehicle沪A96***, and Zhanxin Company was notified. The goods were shipped on January 7, 2007, by vehicle沪A96***. During transportation, at 23:25 on the same day, an accident occurred due to excessive turning speed, resulting in damage to the loaded molds. After the accident, Zhanxin Company paid RMB 70,600 for mold repairs, and Huatai Insurance Company paid Zhanxin Company RMB 60,010 as insurance compensation. In late March 2007, Zhanxin Company issued a "Rights Transfer Document" to Huatai Insurance Company, stating receipt of the RMB 60,010 compensation and transferring the corresponding insurance subject rights to Huatai Insurance Company, authorizing Huatai Insurance Company to pursue compensation from the responsible party.
On January 15, 2008, Huatai Insurance Company filed a lawsuit with the court claiming that Shunjun Company, as the carrier of the molds, had the obligation to ensure the safety of the transported goods, and thus demanded that Shunjun Company compensate RMB 60,010.
In court, Shunjun Company argued that the damaged molds were not the insured items and that the consignor failed to properly secure the cargo, thus should bear partial losses, and expressed unwillingness to accept Huatai Insurance Company's claims. They also provided copies of on-site investigation records made by staff of the appraisal company, proving that the consignor failed to secure the cargo, thereby bearing corresponding responsibility for the consequences of the accident. Huatai Insurance Company believed that this evidence exceeded the evidentiary deadline and questioned the evidence by inquiring with the appraisal company, noting inconsistencies in the names of the molds mentioned in the evidence. Regarding Shunjun Company's argument about discrepancies between the agreed-upon vehicles and the actual transportation vehicles, Huatai Insurance Company provided a situation explanation issued by Shunjun Company's staff, proving the fact of Shunjun Company changing the transportation vehicles.
The court ruled that the cargo transportation contract between Zhanxin Company and Shunjun Company, and the insurance contract between Zhanxin Company and Huatai Insurance Company, were all legally valid. As the carrier, Shunjun Company was legally obligated to assume liability for damages caused by the destruction or loss of goods during transportation. After Huatai Insurance Company paid the insurance compensation, it had the right to request compensation from Shunjun Company within its compensation range. Regarding Shunjun Company's argument that the consigned goods were not properly secured, the court held that as the operator of cargo transportation, Shunjun Company had the duty to ensure the safety of goods during transportation. Zhanxin Company, not being a professional cargo transportation institution, could not foresee potential situations during transportation, and therefore bore no fault for the damage to the goods during transportation. Thus, the court made a first-instance judgment that Shunjun Company should compensate Huatai Insurance Company RMB 60,010.
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