Alex Abbley This is Me

 Web References

1. 1. CGU v Keystone

   cabfinancial.com/cases%202004/ - [Cached]

   Published on: 5/5/2004   Last Visited: 10/11/2006

   On Trine's recommendation, NewTrans contacted Alex Abbley, an agent for Keystone, to help locate a carrier to move the machines from Turlock to the Port of Oakland. Soon after, Abbley, on Keystone's behalf, hired Europa Specialized Carriers, Inc. ("Europa") to pick up the labeling machines from Trine in Turlock and move them to Oakland, where they would be loaded onto a vessel for carriage to Korea.
   ...
   Abbley worked as an agent for Keystone's brokerage division. There was never an understanding that Keystone assumed responsibility for shipment of the labeling machines from Turlock to Oakland. NewTrans contacted Keystone (on Trine's suggestion) because NewTrans was unable to locate a carrier and such was Abbley's speciality. Abbley testified that he was to receive the standard seven percent brokerage commission (as a percentage of the freight charge) for his services.
   ...
   Alex Abbley testified that Keystone's standard procedure for qualifying a potential carrier entailed verifying the carrier's transportation licenses and insurance status. Before selecting Europa, Abbley indeed determined that Europa had valid state and federal carriers' licenses. Additionally, Abbley ascertained that Europa possessed both cargo and liability insurance. A carrier's status regarding licensing and insurance reflects on its safety history and driving record. Any blemishes regarding Europa's accident history would have appeared on its insurance and licensing information. Therefore, Abbley's having verified that Europa was duly licensed and possessed adequate insurance foreclosed any possible need to separately inquire about Europa's drivers and accident history. Furthermore, within a month or two prior to hiring Europa for the Trine shipment, Abbley visited the Europa facility in order to get a feel for the company's operations. In explaining that such visits to carrier's headquarters were extremely rare, Abbley testified that the size, organization, and equipment at the Europa facility convinced him of its competence as a carrier. Notwithstanding his impressions of Europa following this visit, Abbley still proceeded through the standard verification process before hiring Europa for the Trine shipment.