Grigg v. Saia Motor Freight Line, Inc.

709 So. 2d 896, 1998 La. App. LEXIS 263, 1998 WL 78987
CourtLouisiana Court of Appeal
DecidedFebruary 25, 1998
DocketNo. 30293-CA
StatusPublished
Cited by1 cases

This text of 709 So. 2d 896 (Grigg v. Saia Motor Freight Line, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grigg v. Saia Motor Freight Line, Inc., 709 So. 2d 896, 1998 La. App. LEXIS 263, 1998 WL 78987 (La. Ct. App. 1998).

Opinion

|.jWILLIAMS, Judge.

The plaintiff, Gene Grigg, appeals a judgment limiting his recovery to the rate of ten cents' per pound for the items lost during shipping by the defendant, SAIA Motor Freight Line, Inc. (“SAIA”). The trial court denied plaintiffs claims for damages and attorney fees. For the following reasons, we reverse and render.

FACTS

On February 10,1995, Gene Grigg contacted SAIA, an interstate carrier, to arrange for a shipment of goods from Bienville Parish, Louisiana, to Pasadena, Texas. Grigg, the shipper, completed the Uniform Straight Bill of Lading, in which he described the items to be shipped as one carton of instruments, one used Actuator and one used Fisher Butterfly valve, with a total weight of 190 pounds. Grigg did not list a monetary value for these parts on the bill of lading. The goods were lost during delivery while in the carrier’s possession. On March 2,1995, Grigg submitted to SAIA a damage claim form for $1,710, an amount reflecting the purchase, price of the lost parts.

Citing its Tariff No. 170, which was in effect on the date of shipment, SAIA responded that it owed Grigg only ten cents per pound for the weight of the items lost, for a total amount of $19.00. This amount was deposited by SAIA into the Registry of the District Court after Grigg refused payment. Tariff 170, Item 108, states that when a “consignor fails to declare a released value” at the time of shipment, it is subject to the lowest release value, which is the maximum dollar liability per unit of weight for which the carrier will be liable. In such a situation, the tariff provides that used machinery or parts are limited to a value of ten cents per pound.

The plaintiff, Gene Grigg, filed this action against SAIA to recover the value of the lost items, the additional amount paid to replace the lost parts, and ^damages for SAIA’s refusal to timely pay his claim. Plaintiff also sought attorney fees and court costs. The parties stipulated that the value of the shipped parts was $1,710 and that the replacement cost was $2,943.

The trial court took the matter under advisement. In its written reasons for judgment, the trial court found that plaintiff contacted SAIA to arrange an interstate shipment of goods, that he did not include the value of the items in the bill of lading, and that SAIA had not acted in bad faith. The court concluded that plaintiff was entitled to recover only ten cents per pound for the items lost, and denied his claims for damages and attorney fees. Plaintiff appeals.

DISCUSSION

The Interstate Commerce Act contains several provisions governing a motor carrier’s liability to a shipper for the loss of, or damage to, an interstate shipment of goods. These provisions are commonly referred to collectively as the Carmack Amendment. North American Van Lines v. Pinkerton Security Systems, 89 F.3d 452 (7th Cir.1996). At the time of the relevant transaction in the present case, the provisions were contained in 49 U.S.C. §§ 10103, 11707, 10730.

Congress substantially reorganized and modified Title 49 in the Interstate Commerce Commission Termination Act of 1995, Pub.L. No.104-88,109 Stat. 803, effective January 1, 1996. That act preserved the existing Car-mack Amendment provisions governing carrier liability and recodified them at 49 U.S.C. § 14706. North American Van Lines, supra. We shall refer to those Title 49 sections which were in effect on the date of plaintiffs shipment, prior to the enactment of the ICC Termination Act.

The plaintiff argues that the Carmack Amendment does not preempt existing remedies under Louisiana law. In support of his argument, plaintiff cites Stacks v. Mayflower Transit, Inc., 95-693 (La.App. 3rd Cir. [899]*89911/2/95), 664 So.2d 566, which involved a dispute over a damaged interstate shipment. The court found that federal law did not preempt application of Louisiana law because the carrier failed at trial to introduce evidence concerning its maintenance of a valid tariff. However, the factual situation in Stacks, supra, can be distinguished from that of the present ease. Here, the parties stipulated at trial that the defendant’s tariff was valid and in effect on the date of the shipment. Thus, the court’s reasoning in Stacks cannot be utilized by the plaintiff to avoid the federal preemption of state law in the present situation.

In further support of his argument, plaintiff relies on 49 U.S.C. § 13103 (formerly codified at 49 U.S.C. § 10103), which states that the remedies provided in this part are in addition to remedies existing under another law or at common law. However, the United States Supreme Court has held, since Adams Express Co. v. Croninger, 226 U.S. 491, 33 S.Ct. 148, 57 L.Ed. 314 (1913), that the Carmack Amendment, including the above-cited provision, preempts all state and common law remedies available to a shipper against a carrier for loss or damage to interstate shipments. North American Van Lines, supra; Hughes v. United Van Lines, Inc., 829 F.2d 1407 (7th Cir.1987). Therefore, in the present case, the Carmack Amendment precludes the plaintiff from seeking any remedy under Louisiana law against the defendant for the loss or damage of the interstate shipment. The assignment of error lacks merit.

Limitation of Liability

The plaintiff contends that even if the Car-mack Amendment preempts state law remedies, the trial court erred in finding that the defendant’s liability for the lost items was limited to ten cents per pound of the shipment weight. Plaintiff Largues that the bill of lading did not form a valid agreement to limit the carrier’s liability.

As noted previously, the Carmack Amendment governs the liability of a common carrier to a shipper for loss of an interstate shipment. At all times relevant to this dispute, 49 U.S.C. § 11707(a) provided that a common carrier transporting goods in interstate commerce shall issue a bill of lading for property received for transportation. That carrier is liable to the person entitled to recover under the bill of lading for the actual loss or injury to the property.

A carrier may establish rates for transportation of property under which the liability of the carrier for such property is limited to a value established by written declaration of the shipper, or by written agreement, when that value would be reasonable under the circumstances surrounding the transportation. 49 U.S.C. § 10730(c) (presently codified at 49 U.S.C. § 14706(c) (1996)). Under this provision, a carrier may negotiate limited liability in exchange for a reduced rate of transportation. North American Van Lines, supra.

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