Nipponkoa Insurance v. Federal Express Corp.

MEMORANDUM **

NipponKoa Insurance Company appeals the district court’s entry of judgment in favor of Federal Express Corporation (“FedEx”), limiting FedEx’s liability to NipponKoa to $14,801.18. NipponKoa insured a shipment of computer memory modules with an alleged value of $340,428.91, which a FedEx employee stole from its distribution facility in Feltham, England, before the shipment could be delivered to the consignee. NipponKoa, as assignee, asserts that FedEx should bear the loss under the terms of FedEx’s contract of carriage with the insured, Toshiba America Electronic Components (“Toshiba”). 1 We have jurisdiction under 28 U.S.C. § 1291 . We review de novo the district court’s summary judgment order, Padfield v. AIG Life Ins. Co., 290 F.3d 1121, 1124 (9th Cir.2002), and we affirm.

A carrier such as FedEx may limit its liability, provided that it gives the shipper reasonable notice of that limitation and “a fair opportunity to purchase higher liability.” Read-Rite Corp. v. Burlington Air Express, Ltd,. 186 F.3d 1190, 1198 (9th Cir.1999). Because Toshiba purchased separate insurance from NipponKoa to cover the shipment at issue, NipponKoa cannot dispute that these…