Consequential Loss Caused by Odor Covered

A client who owns a refrigerated warehouse experienced a covered loss to the refrigerating equipment of one of its cooling chambers. A large quantity of garlic was stored in that chamber, which soon deteriorated. The next chamber contained cereal that became contaminated due to the smell of the spoiled garlic. The contents of all of the cooling chambers in the warehouse are designated as “specified property.” The carrier paid for the loss of the garlic under the consequential damage form, BM 15 28 06 95. We think they should pay for the loss of the cereal as well. Do you agree?

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