How does section 4 of a bill of lading deal with the replacement value of a shipment of potatoes?

New Brunswick, Canada

The following excerpt is from Canadian Pacific Ltd. v. McCain Produce Co. Ltd., 1980 CanLII 2473 (NB CA):

In this respect, the trial Judge stated at pp. 14-5 [at p. 601 N.B.R.] of his reasons that even if clause 4 in the bill of lading did govern, ... it applies to the goods only and the selling price of the potatoes plus freight is that value ... It does not deal with related damages. and at p. 19 [p. 605] of his reasons, he stated: Section 4 sets forth a method for computing the loss as being the value of the goods at the place and time of shipment. I find this value to be the selling price, and not the replacement value, and to be the same at the shipping point as at the port. The conditions deal with "damage to the goods" and after that is computed ... I find the carrier reverts to the position of a common carrier and that consequential damages are not excluded and Hadley v. Baxendale, 156 E.R. 151, applies to any further assessment in contract.

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