Professional Relationship Case Studies

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Professional Relationship Case StudiesCase Study 1The dispute arose between an Australian fruit grower, a freight forwarder, and an air freight serviceprovider. It was the first time the fruit grower had shipped fresh produce overseas. The grower wasshipping a consignment of produce to a grocery store in Thailand, using a freight forwarder toorganise the packing and transfer to the airline freight centre.The grower failed to realise it was his responsibility to ring and check when the consignment hadarrived in Thailand, and then arrange for the grocery store in Thailand to collect the fruit. Anotherissue related to advising the freight forwarder of the packing requirements and whether the goodswere packed frozen, chilled or at room temperature.The shipment contained a variety of produce which required different packing arrangements. Thefruit was left in the freight service provider’s storage facility, at inappropriate temperatures, androtted. The fruit shop in Thailand called the fruit grower to complain the order had not beenfulfilled; the grower then set about tracing his goods.The fruit grower claimed for his loss against the air freight service provider as he believed it was theresponsibility of the air freight service provider to inform him of the consignment’s arrival, while theairline claimed that it was the fruit grower’s responsibility. The fruit grower did not pay the freightforwarder who decided to seek a claim against the airline freight company. The airline freightcompany rejected his claim.The dispute was resolved with the air freight service provider paying compensation (approximately50% of the total value of the consignment) to the fruit grower in the form of freight credits. The airfreight service provider realised that the commercial benefits of maintaining a long-termrelationship with the fruit grower were more important than shortterm financial implications, andsettled the dispute quickly.Although the compensation was only for 50% of the value, the fruit grower was happy because thelarger company had shown him respect. He continues to use the provider to supply his overseasbusiness.The fruit grower also understood his business required an ongoing relationship with a freightforwarder and paid 50% of the freight forwarding fee.Case Study 2The importance of fully understanding your obligations and responsibilities under any executedcontract is demonstrated in a dispute between a custodian of crown land and a private individual.A recently arrived migrant to Australia approached a mortgage broker with a view to purchasing aproperty that included a number of structures that had been built on crown land. After completingthe loan application together, the broker referred the client to a relationship partner, in another partof town, to undertake the conveyancing for the purchase.Shortly after completing the purchase, the custodian informed the new owner that he would needto remove the structures as they were illegally built on crown land.The structures had been built on this land a number of years before by the previous owner. Thecustodian decided to leave them in place and only pursue their removal when the previous ownerhad passed away. It was written into the contract signed by the new owner, when he purchased theproperty that the custodian would remove the structures when the property changed hands. Theindividual said he was not made aware of this clause in the contract and claimed unfair behaviour.This dispute arose because of:→ the small business failing to fully understand its obligations under the contract it signed→ failing to get adequate legal advice to ensure the contract met its expectations→ the custodian failing to ensure that the small business understood its obligations andresponsibilities under the terms of the contract.

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