Shielding International, Inc. v. Oak Harbor Freight Lines, Inc.

MEMORANDUM *

Defendant Oak Harbor Freight Lines, Inc. (“Oak Harbor”) appeals an order of the district court granting summary judgment to plaintiff Shielding International, Inc. (“Shielding”). The court held Oak Harbor liable under the Carmack Amendment, 49 U.S.C. § 14706 , for damage to Shielding’s shipment of plastic sheeting. We have jurisdiction under 28 U.S.C. § 1291 , and affirm.

In 2005, Oak Harbor delivered a shipment of Shielding’s freight in damaged condition. Shielding submitted a claim for $46,042. Oak Harbor admitted responsibility but rejected the amount, contending that a release rate of $2.00 per pound listed in its OAKH 100 tariff limited its liability to $4,782.

The Carmack Amendment requires a carrier to offer a shipper a choice of liability rates before the carrier may limit its liability for freight damage. Hughes Aircraft Co. v. N. Am. Van Lines, Inc., 970 F.2d 609, 611-12 (9th Cir.1992). Neither Oak Harbor’s tariff, its preprinted bills of lading, nor its pricing agreement mentions any such choice.

Rather, Oak Harbor contends it had “a procedure in place” by which, “had Shielding inquired, it could have selected a higher limitation of liability.” This…