M.I.S. Engineering v. U.S. Express Enterprises, Inc.

438 F. Supp. 2d 1056, 2006 U.S. Dist. LEXIS 43165, 2006 WL 1788197
CourtDistrict Court, D. Nebraska
DecidedJune 26, 2006
Docket4:06CV3074
StatusPublished
Cited by5 cases

This text of 438 F. Supp. 2d 1056 (M.I.S. Engineering v. U.S. Express Enterprises, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Nebraska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M.I.S. Engineering v. U.S. Express Enterprises, Inc., 438 F. Supp. 2d 1056, 2006 U.S. Dist. LEXIS 43165, 2006 WL 1788197 (D. Neb. 2006).

Opinion

MEMORANDUM AND ORDER

KOPF, District Judge.

On November 21, 2002, the plaintiff, M.I.S. Engineering (“M.I.S.”), hired the defendant, U.S. Express Enterprises, Inc. (“U.S-Xpress”), 1 to transport equipment from Buffalo, Minnesota, to Lincoln, Nebraska. M.I.S. alleges that the equipment was extensively damaged when it arrived in Lincoln the next day. M.I.S. submitted a claim for the alleged damages to U.S. Xpress on November 26, 2002, but the claim was denied on January 7, 2003. Over three years later, on February 8, 2006, M.I.S. filed suit in the District Court of Lancaster County, Nebraska, alleging that U.S. Xpress “had a duty to exercise care in transporting the goods and to deliver the good [sic] without damage,” which it “failed to discharge,” and also that “[t]he occurrence of damaging these goods is one[ ] which would not, in the ordinary course of things, happen in the absence of negligence.” (Complaint ¶¶ 10, 11, and 13 (filing 1, at 4).) U.S. Xpress removed the action to this court on March 27, 2006, on the basis of federal question jurisdiction under 28 U.S.C. § 1331, and has now moved for summary judgment.

U.S. Xpress claims “that it is entitled to judgment as a matter of law because, first, Plaintiffs state law causes of action are preempted by the Carmack Amendment, 49 U.S.C. § 14706, et seq. and, second, Plaintiffs causes of action are barred by the statute of limitations provided in 49 U.S.C. § 14706(e)(1) of the Carmack Amendment.” (Motion for Summary Judgment (filing 6, at 1).) “In the alternative,” U.S. Xpress claims that “Plaintiffs causes of action are barred by Nebraska state statutes of limitations [of three years and two years, respectively,] ... Neb.Rev. Stat. §§ 25-219 [applicable to ‘actions upon a liability created by a federal statute ... for which no period of limitations is provided in such statute’] and 25-226 [applicable to ‘[a] cause of action for a freight damage *1059 claim ... against a common carrier’].” (Id.) M.I.S., after stating without explanation that “[t]he only issue to be determined is whether the statute of limitations has run,” argues that “the plaintiff is claiming that [its] [oral] contract was breached, [a claim subject to a] four year statute of limitation^] [under Neb.Rev.Stat. § 25-206], and that the defendant was negligent], [a claim subject to a] four year statute of limitation^] [under Neb.Rev. Stat. § 25-207].” (Plaintiffs Brief (filing 12-1), at 2 and 4.)

A. Preemption

U.S. Xpress, after having removed this action from state court by alleging that “the United States District Court has original jurisdiction under 28 U.S.C. § 1331, in that the case arises under and pursuant to the laws of the United States” (Notice of Removal, ¶ 3 (filing 1, at 1)), is not in a very good position to argue that the action should be dismissed with prejudice because only state-law claims are alleged in the complaint. If this court lacks subject matter jurisdiction, 2 then the action cannot be dismissed; it can only be remanded to state court pursuant to 28 U.S.C. § 1447(c). See e.g., Lauder v. Bekins Van Lines Co., No. 4:05-CV-1132 CAS, 2005 WL 3333269, *4 (E.D.Mo. Dec.7, 2005) (plaintiffs allegations concerning the interstate transport of goods by a common carrier under a bill of lading did not plead a Carmack Amendment cause of action, but, rather, pleaded state law claims which were subject to preemption by the Car-mack Amendment; because the Carmack Amendment does not completely preempt state law claims for purposes of federal removal jurisdiction, remand was required).

However, I must disagree with the district court’s holding in Lauder that the Carmack Amendment does not completely preempt state-law claims for purposes of federal removal jurisdiction. 3 I previously examined this jurisdictional issue in Nebraska Turkey (Growers Co-op Ass’n v. ATS Logistics Services, Inc., No. 4:05CV3060, 2005 WL 3118008, *4 (D.Neb. Nov.22, 2005), and concluded that a complaint alleging a state-law claim for breach of contract also contained all of the essential elements of a Carmack Amendment claim, and thus was not subject to remand under 28 U.S.C. § 1447(c). In reaching this result, I stated:

*1060 Nebraska Turkey Growers pleaded all of the essential elements of a Carmack Amendment claim by alleging that ATS agreed to deliver the turkeys to Florida, that ATS picked up the shipment in Nebraska (as evidenced by a bill of lading that identifies ATS as the carrier), that ATS failed to make the contracted-for delivery, and that Nebraska Turkey Growers thereby sustained in damages in the amount of $29,345.74. “The cases make it clear that when damages are sought against a common carrier for failure to properly perform, or for negligent performance of, an interstate contract of carriage, the Carmack Amendment governs.” Fulton v. Chicago, Rock Island & P.R. Co., 481 F.2d 326, 331-32 (8th Cir.1973) (quoting American Synthetic Rubber Corp. v. Louisville & N.R.R. Co., 422 F.2d 462, 466 (6th Cir.1970). The breach-of-contract claim alleged in Nebraska Turkey Growers’ original complaint is thus preempted by federal statute. See id. (holding that the Car-mack Amendment has preempted suits in specific negligence by holders of bills of lading against their carriers). See also Rocky Ford Moving Vans. Inc. v. United States, 501 F.2d 1369, 1372 (8th Cir.1974) (“In adopting the Carmack Amendment, Congress intended to impose a single uniform federal rule upon the obligations of carriers operating in interstate commerce.”); Woods v. Unigroup, Inc., 945 F.Supp. 1255, 1256 (E.D.Mo.1996) (stating that the majority of circuit courts have concluded that state law causes of action are preempted by the Carmack Amendment). It follows that the court has subject matter jurisdiction, and that Nebraska Turkey Growers’ motion to remand the action to state court pursuant to § 1447(c) must be denied.

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438 F. Supp. 2d 1056, 2006 U.S. Dist. LEXIS 43165, 2006 WL 1788197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mis-engineering-v-us-express-enterprises-inc-ned-2006.