Caporicci Footwear, Ltd. v. Federal Express Corp.

894 F. Supp. 258, 1995 U.S. Dist. LEXIS 11380, 1995 WL 470471
District Court, E.D. Virginia·Decided January 31, 1995·No. Civ. A. 94-1083-A·Published·Cited by 5 cases

Opinion

MEMORANDUM OPINION

HILTON, District Judge.

This matter came before the Court on defendant’s motion for summary judgment. Defendant Federal Express Corporation is a federally certificated all-cargo airline operating under authority granted to it by the Federal Aviation Administration. On or about April 4, 1994, Plaintiff Caporieci Footwear, Inc. tendered twenty packages to Federal Express for shipment from Fairfax, Virginia to the International Shoe Company at 4995 N.W. 79th Ave. in Miami, Florida via Federal Express’ Collect on Delivery (C.O.D.) Service. Upon delivery of the packages, Federal Express was to collect and return to Plaintiff cashier’s cheeks totalling $97,800. The address listed on the airbill was a self storage complex. The courier drove to a storage bay where an individual identifying himself as Bemie Felice, a representative of International Shoe Company, instructed him to deliver the packages in front of the door of the bay. The plaintiff had in fact previously dealt with an individual named Bernard Felice at the International Shoe Company. The courier unloaded the goods onto the ground in front of the bay and the person identifying himself as Felice handed him two facially valid cashier’s cheeks in the amounts of $91,880.05 and $5,950.00. The plaintiff alleges that several unidentified individuals then loaded the packages onto a waiting U-Haul truck. Federal Express denies that there were any trucks present at the time of delivery. Federal Express subsequently returned the checks to the plaintiff who later discovered that the checks were drawn on a bank that does not exist.

*260 The plaintiff brings this action alleging that Federal Express breached its contractual obligations by failing to go inside the office of the self storage complex to deliver the packages. The plaintiff argues that had the courier gone into the office of the complex he would have determined that there was no such company at that address. Plaintiff further asserts that delivering the packages outside of one of the storage bins constituted negligence and resulted in the conversion of its goods.

Under Fed.R.Civ.P. 56, a court should grant summary judgment if there is no genuine dispute of material facts and the moving party is entitled to judgment as a matter of law. The moving party must demonstrate that there is no issue of material fact. Once the moving party has sustained this burden, the opposing party must introduce specific evidence showing that there is a genuine issue for trial. Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986). This Court finds that although there are facts in dispute, these facts are not material to the outcome of the case. Even assuming that all facts propounded by plaintiff are true, the defendant is entitled to summary judgment as a matter of law. Anderson v. Lobby Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986).

The liability of Federal Express and other federally certificated air carriers for loss attendant to goods in transit is governed exclusively by federal law. Arkwright-Boston Mfrs. Mutual Ins. Co. v. Great Western Airlines, Inc., 767 F.2d 425, 427 (8th Cir.1985); First Pennsylvania Bank, N.A. v. Eastern Airlines, 731 F.2d 1113 (3d Cir.1984); North American Phillips Corp. v. Emery Air Freight Corp., 579 F.2d 229, 233-34 (2d Cir.1978). The airbills such as those used by Federal Express form the basic contract between the shipper and the carrier. Southern Pacific Transport. Co. v. Commercial Metals Go., 456 U.S. 336, 102 S.Ct. 1815, 72 L.Ed.2d 114 (1982). The terms of the airbills, however, may be supplemented by incorporating the carrier’s service guides by reference. Hopper Furs, Inc. v. Emery Air Freight Corp., 749 F.2d 1261, 1264 (8th Cir.1984). Federal Express’ July 1993 Service Guide was in effect on the date Plaintiff shipped its packages and Federal Express expressly incorporated the terms of this service guide into its Airbills. 1 Accordingly, the language found on the Airbills and in the July 1993 Service Guide constitute the contractual agreement between plaintiff and Federal Express.

Under the terms of the Airbills and Service Guides, the plaintiff assumed all risk of fraud. The reverse side of the Airbills provided that “[a]ll checks (including cashier’s, certified, business and personal) and money orders are collected at you [the shipper’s] risk, including risk of nonpayment and forgery.” The plaintiff concedes that Federal Express is not responsible for accepting the fraudulent checks. The checks appeared to be valid cashier’s cheeks and Federal Express discharged its contractual obligation by collecting, and then delivering, these apparently valid cashier’s checks to the plaintiff.

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Caporicci Footwear, Ltd. v. Federal Express Corp., 894 F. Supp. 258, 1995 U.S. Dist. LEXIS 11380, 1995 WL 470471 (E.D. Va. 1995).

894 F. Supp. 258 (Caporicci Footwear, Ltd. v. Federal Express Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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