Hughes Aircraft Company National Union Fire Insurance Company v. North American Van Lines, Inc., and Does 1-100, Inclusive

Plaintiffs Hughes Aircraft Company and National Union Fire Insurance Company appeal a grant of summary judgment in favor of defendant North American Van Lines. Hughes and National Union contend that North American did not follow the statutory procedure for limiting its liability for damages to certain cargo shipped by Hughes. Plaintiffs also argue that they should be permitted to pursue a state law negligence cause of action against North American. We have jurisdiction pursuant to 28 U.S.C. § 1291 . We disagree with both of plaintiffs’ arguments and affirm the district court’s judgment.

FACTS

On March 1, 1987 Hughes Aircraft Company and North American Van Lines agreed to a contract under which North American would transport household products for Hughes employees and certain “high value” products for the aerospace firm. After North American responded to a proposal for a “contract carriage” arrangement, Hughes and North American negotiated the terms of the contract “at arm's length.” The agreement was set forth in the form of a Hughes “Corporate Purchase Agreement.” Included in the contract was an attached provision requiring North American to indemnify Hughes for damages that…