D.M. Diamond Corporation v. Dunbar Armored, Inc. and P.C. Brown

CourtCourt of Appeals of Texas
DecidedSeptember 23, 2003
Docket14-01-00531-CV
StatusPublished

This text of D.M. Diamond Corporation v. Dunbar Armored, Inc. and P.C. Brown (D.M. Diamond Corporation v. Dunbar Armored, Inc. and P.C. Brown) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D.M. Diamond Corporation v. Dunbar Armored, Inc. and P.C. Brown, (Tex. Ct. App. 2003).

Opinion

Motion for Rehearing Overruled and Opinion of June 12, 2003 Withdrawn, Reversed and Remanded and Opinion filed September 23, 2

Motion for Rehearing Overruled and Opinion of June 12, 2003 Withdrawn, Reversed and Remanded and Opinion filed September 23, 2003.

In The

Fourteenth Court of Appeals

____________

NO. 14-01-00531-CV

D. M. DIAMOND CORPORATION, Appellant

V.

DUNBAR ARMORED, INC. and P. C. BROWN, Appellees

_______________________________________________________

On Appeal from the 61st District Court

Harris County, Texas

Trial Court Cause No. 00-08803

O P I N I O N   O N   M O T I O N   F O R   R E H E A R I N G 

            Our opinion of June 12, 2003 is withdrawn, and this opinion is issued in its place.

            Appellees’ motion for rehearing urges that the recent opinion of the Texas Supreme Court in Delta Airlines, Inc. v. Black, 46 Tex. Sup. Ct. J. 872 (June 28, 2003), speaks to the breach of contract claim asserted in appellant’s first issue, and requires affirmance of the summary judgment.  We disagree.  The motion for rehearing is overruled; the summary judgment is reversed and the cause is remanded to the trial court.

            This appeal centers on the law applicable to the loss of a package of diamonds shipped in interstate transport.

            Appellant, D. M. Diamond Corporation (“DM”), a shipper, appeals a take-nothing summary judgment in favor of appellees, Dunbar Armored, Inc., an interstate carrier, and its employee, P. C. Brown (collectively, “Dunbar”).  DM asserts nine issues on appeal. 

            Because we find the trial court erred in determining both (1) that the Carmack Amendment[1] to the Interstate Commerce Act (“the Carmack”) governed the underlying shipment, rather than the Air Deregulation Act[2] (“the ADA”), and (2) that certain of DM’s causes of action were barred by federal preemption, we reverse and remand.

Background and Procedural History

            DM is a wholesale diamond merchant.  Dunbar is both a motor carrier and indirect air freight carrier.  Since 1995, DM and Dunbar have operated together under a Service Contract whereby Dunbar provides pickup and overnight delivery of sealed packages containing precious stones and other valuables for DM.  Pursuant to the Service Contract, DM called on Dunbar to transport from Houston to New York City a package of diamonds that DM had received on consignment from merchants in New York City.  A DM representative filled out a Dunbar air bill for delivery, including a declaration that the value of the package was $30,000.  Brown, Dunbar’s employee, picked up the package on February 19, 1999.  On March 1, 1999, Dunbar invoiced DM for the delivery; DM paid Dunbar’s invoice on March 16, 1999. 

            The New York City merchants’ invoice to DM would have been due on or about May 19, 1999, if DM did not return the consigned diamonds.  On May 26, 1999, the merchants faxed DM a request for payment.  Unaware that Dunbar had not delivered the package, DM contacted Dunbar that same day or the next, and requested a copy of the signed air bill to show DM’s consignor that the package had been delivered.

            Over the next several months, Dunbar repeatedly assured DM that it had the signed air bill, that it was continuing to look for it, and that it was encountering delays in locating it due to a move of its storage warehouse.  On June 25, 1999, Dunbar promised DM in writing that it would locate the signed air bill by June 28, 1999.  However, Dunbar never produced the signed air bill.

            On July 6, 1999, approximately five months after Dunbar picked up the package from DM for delivery, DM filed a formal written claim of loss with Dunbar.  A little over a month later, on August 9, 1999, Dunbar denied DM’s claim, invoking paragraph five of the Terms and Conditions of the Service Contract as its basis.  Paragraph five states:

Within ten (10) days after discovery of any loss, but in no event more than thirty (30) days after delivery to Dunbar of the . . . valuable articles in connection with which such claim is asserted, [DM] shall give notice of claim in writing to Dunbar.  If [DM] fails to comply with these conditions, [DM] agrees that all claims against Dunbar relating to the lost items are deemed waived and released.

(hereinafter

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