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In Canada, and no doubt elsewhere, the relationship between shippers, freight forwarders and carriers generally works to the mutual benefit of all. However, in tough economic times, the bankruptcy of a freight forwarder often will leave the carrier and shipper little choice but to litigate a dispute over the freight. The not unusual circumstances involve a situation where the shipper paid the freight forwarder upon being invoiced but the freight forwarder went out of business without having paid the freight to the carrier. In a recent Federal Court of Canada decision the court was faced with just this problem.