Certain Lloyds Underwriters Subscribing to Policy Number MC-13159 v. Baldwin Distribution Services, Ltd.

Good Law
540 F. App'x 579
United States Court of Appeals for the Ninth CircuitSeptember 10, 201312-55166California1,298 words

Opinion

Opinion

facts and two documents. The district court ruled in favor of Lloyds, and Baldwin

appeals. We affirm.

We have jurisdiction pursuant to 28 U.S.C. § 2107(a). We review the grant

of summary judgment de novo. Hughes Aircraft Co. v. North American Van Lines,

Inc., 970 F.2d 609, 611 (9th Cir. 1992).

*** The Honorable Lloyd D. George, Senior District Judge for the U.S. District Court for the District of Nevada, sitting by designation. 1 Baldwin does not dispute that it is liable for the loss of Netgear’s cargo. -3- The Carmack Amendment subjects a motor carrier transporting cargo in

interstate commerce to absolute liability to the shipper for “actual loss or injury to

property.” 49 U.S.C § 14706(a)(1). However, a carrier may limit its liability “to a

value established by written or electronic declaration of the shipper or by written

agreement between the carrier and shipper if that value would be reasonable under

the circumstances surrounding the transportation.” 49 U.S.C. §14706(c)(1)(A). To

effectively limit its liability, a carrier must: (1) at the shipper's request, provide the

shipper with a written or electronic copy of applicable rates, (2) give the shipper…

lead Opinion

MEMORANDUM ***

Fed-Ex subcontracted with Baldwin Distribution Services, Ltd. (“Baldwin”) to transport cargo shipped by Netgear. Baldwin received the cargo but its truck overturned during transport, resulting in a total loss of the cargo. Certain Lloyds Underwriters Subscribing to Policy Number MC-13159 (“Lloyds”), who insured Netgear and became subrogated to its rights, brought this action against Baldwin pursuant to the Carmack Amendment, 49 U.S.C. § 14706 et seq. The parties filed cross-motions on the amount of Baldwin’s liability. 1 To limit expenses, the parties stipulated to have their cross-motions heard exclusively on seventeen stipulated facts and two documents. The district court ruled in favor of Lloyds, and Baldwin appeals. We affirm.

We have jurisdiction pursuant to 28 U.S.C. § 2107 (a). We review the grant of summary judgment de novo. Hughes Aircraft Co. v. North American Van Lines, Inc., 970 F.2d 609, 611 (9th Cir.1992).

The Carmack Amendment subjects a motor carrier transporting cargo in interstate commerce to absolute liability to the shipper for “actual loss or injury to property.” 49 U.S.C § 14706(a)(1). However, a carrier may limit its liability “to a value…

dissent Opinion

Silverman, J.

dissenting:

I respectfully dissent.

Under the Carmack Amendment, the liability provisions of a bill of lading cover “(A) the receiving carrier, (B) the delivering carrier, or (C) another carrier over whose line or route the property is transported.” 49 U.S.C. § 14706 . “[T]he liability of such participating carrier is fixed by the applicable valid terms of the original bill of lading.” Missouri, K. & T. Ry. Co. of Texas v. Ward, 244 U.S. 383, 387 , 37 S.Ct. 617 , 61 L.Ed. 1213 (1917).

The parties stipulated that the bill of lading limited the carrier’s liability to the shipper to $5 per pound. That stipulation is dispositive and forecloses further debate about the bill of lading’s liability limit. Because Baldwin operated under the bill of lading, its liability to the shipper — Net-gear — was governed by the bill of lading. The separate Master Agreement between Baldwin and FedEx defined the liability of Baldwin to FedEx, not Baldwin to Net-gear. I would reverse.

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