Trans World Airlines, Inc. v. Alitalia-Linee Aeree Airlines

Alitalia and Lufthansa appeal from a judgment awarding Trans World Airlines, Inc. indemnification against appellants for damages paid by TWA to a shipper whose goods were damaged while being shipped from Los Angeles to Pisa, Italy.

Gentry-Nevada, Inc., a Nevada corporation, is engaged in the manufacturing and racing of speedboats. On June 22, 1973, Fred Miller, chief mechanic of Gentry-Nevada, transported by truck to the freight office of TWA in Los Angeles, two specially built speedboat engines. The engines were new and were packed in new, solidly constructed, wooden crates. Each engine was worth approximately $14,000. Miller intended to install the matched pair of engines in Gentry-Nevada’s 36-foot racer, American Eagle, which was located in Italy. Gentiy-Nevada planned to enter the American Eagle in the World Cup Speedboat Championships to be held in Yugoslavia.

Miller told the TWA representative that he wanted the engines shipped to Frankfurt, Germany, aboard TWA, then shipped to Pisa, Italy, aboard another carrier, Seaboard, which Miller knew had a plane capable of taking the engines to Pisa. TWA accordingly issued an air waybill which showed routing to Frankfurt,…