Claim for compensation
346 Claim for compensation
A carrier whose head contract of carriage is terminated by a principal contractor may claim compensation from the principal contractor if—
the carrier entered into the head contract of carriage by arrangement with a previous carrier whose provision of services to the principal contractor under contracts of carriage was replaced by the carrier, and
under the terms of the arrangement between the previous carrier and the carrier, a sum of money was paid by the carrier to the previous carrier as a premium or fee in connection with the entry into the head contract of carriage by the carrier, and
it is a custom and practice in the relevant section of the industry or business of the principal contractor that such a premium or fee be paid, and
the principal contractor knew or ought reasonably to have known that such a premium or fee had been paid to the previous carrier, and
the principal contractor failed to take reasonable steps to advise the carrier that it was not a requirement of the principal contractor that such a payment be made or requested.
A carrier is not prohibited from making a claim under this section because the carrier performs minor or incidental work for a person other than the principal contractor under the head contract of carriage.
This Act’s bill:Explanatory memorandumSecond reading speech
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