Payment of compensation for damaged or lost goods does not automatically transfer ownership of the goods to the carrier or insurer. Under Polish civil law, ownership is a separate legal right and requires an appropriate legal basis for its transfer.

In transport cases, compensation is intended to repair the loss suffered by the entitled party. Simply paying compensation therefore does not, by itself, create a sale or other transfer of ownership. Treating compensation as an automatic purchase of the damaged goods could also raise tax implications.

Under the CMR Convention, compensation for lost or damaged goods is generally calculated by reference to the value of the goods at the place and time when they were accepted for carriage, subject to statutory limits. Compensation may also include freight, customs duties and certain other transport-related expenses. These rules determine the carrier’s financial liability; they do not provide that ownership of the damaged goods automatically passes to the carrier.

Under the Polish Civil Code, ownership is normally transferred through a legal transaction, such as a sale or donation, in accordance with the parties’ agreement and the nature of the goods. For generic goods, transfer of possession is generally required.

Consequently, if goods are damaged during transport and the carrier pays compensation, the damaged goods normally remain the property of the person who owned them. The carrier does not acquire them merely because it has paid compensation.

The parties may, however, agree separately that the damaged goods will be transferred to the carrier or another party. Such an arrangement requires an appropriate legal basis and should not be assumed solely from the payment of compensation.

In practical terms, compensation and ownership are two separate legal issues. Paying compensation settles a financial claim arising from the damage or loss; it does not automatically determine who owns the remaining or damaged goods.

Author: Łukasz Strzelczyk, Attorney-at-law, Trans Lawyers

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