Phoenix Team Obtains Summary Judgment For Interstate Moving Company In Damaged Goods Dispute
Published date | 22 September 2023 |
Subject Matter | Corporate/Commercial Law, Litigation, Mediation & Arbitration, Corporate and Company Law, Contracts and Commercial Law, Trials & Appeals & Compensation |
Law Firm | Lewis Brisbois Bisgaard & Smith LLP |
Author | Mr Andrew Kleiner and Julie E. Maurer |
Phoenix, Ariz. (September 21, 2023) - Phoenix Partner Julie E. Maurer, Chair of the National Cargo & Logistics Practice and co-Chair of the Transportation Practice, and Partner Andrew Kleiner recently obtained summary judgment in the U.S. District Court for the Middle District of Florida on behalf of their client, an interstate moving company, when the court ruled that their client properly limited its liability to $0.60 per pound per article for damage and loss that occurred during the interstate transport of the plaintiff's goods.
In this case, the plaintiff hired the interstate moving company to transport his household goods and personal property from California to Florida. The bill of lading contract stipulated a bound weight of 13,499 pounds for the shipment and outlined the plaintiff's selection of reduced rate valuation coverage at $0.60 per pound. During the move, a portion of the plaintiff's shipment was damaged. Instead of accepting the contractually owed damages under the moving company's bill of lading contract based on the reduced rate valuation of $0.60 per pound he selected, he filed suit.
Despite multiple amendments, Lewis Brisbois successfully secured dismissals through various motions to dismiss, with the court ruling that the Carmack Amendment preempted all plaintiff's state law claims. Following this, Lewis Brisbois pursued partial summary judgment regarding the application of the limitation of liability, capping damages at $0.60 per pound. They emphasized proper limitation of liability in accordance with the Hughes test, a four-part assessment adopted across the nation. See Hughes v. United Van Lines, Inc., 829 F.2d 1407 (7th Cir. 1987). Under this test, which has been adopted by the Eleventh Circuit, a moving company must establish: 1) compliance with tariff guidelines (now obsolete); 2) obtaining written agreement on liability choice from the shipper; 3) offering the shipper a reasonable opportunity to choose between liability levels; and 4) issuing a bill of lading prior to shipment. See Essex Ins. Co. v. Barrett Moving & Storage, Inc., 885 F.3d 1292, 1306 (11th Cir. 2018); Werner Enterprises, Inc. v. Westwnid Mar. Int'l, Inc. 554 F.3d 1319, 1326 (11th Circ. 2009).
In response, the plaintiff contended that he did not receive a copy of the tariff despite alleged requests and claimed inadequate disclosure about waiving full value replacement. However, the Court rejected these arguments, stating that the plaintiff's self-serving and...
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