Moody v. Federal Express Corp.

858 N.E.2d 918, 368 Ill. App. 3d 838, 306 Ill. Dec. 860, 2006 Ill. App. LEXIS 962
CourtAppellate Court of Illinois
DecidedSeptember 13, 2006
DocketNo. 5—05—0519
StatusPublished
Cited by9 cases

This text of 858 N.E.2d 918 (Moody v. Federal Express Corp.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moody v. Federal Express Corp., 858 N.E.2d 918, 368 Ill. App. 3d 838, 306 Ill. Dec. 860, 2006 Ill. App. LEXIS 962 (Ill. Ct. App. 2006).

Opinion

JUSTICE McGLYNN

delivered the opinion of the court:

The plaintiff, Erin Moody (Moody), individually and on behalf of all those similarly situated, appeals the decision of the circuit court granting a summary judgment in favor of the defendant, Federal Express Corp. (FedEx). On appeal, Moody argues the circuit court erred in finding her claim preempted by the Airline Deregulation Act of 1978 (Airline Deregulation Act) (49 U.S.C. §41713(b)(l) (2000)). We affirm.

FACTS

Moody filed a one-count breach-of-contract class action complaint against FedEx, a courier service that provides package transportation and delivery services. In her complaint, Moody alleged that FedEx breached its shipping contract by charging customers higher rates for express delivery and failing to deliver the packages by the agreed delivery time. Moody sought compensation for the difference in value between the services customers requested and the services they received.

On January 22, 2002, Moody completed a “Fed Ex USA Airbill” and chose to send a package “FedEx Priority Overnight, Next Business Morning.” The airbill incorporated by reference FedEx’s service guide and the terms and conditions contained therein. Thus, in exchange for $41.31, FedEx agreed to deliver Moody’s package by 8 a.m. the next morning. Moody alleges that the package did not arrive at its destination until 9 a.m. two days after it was sent. Moody seeks damages in the amount of money she paid for the priority shipment less the amount she could have paid for the service she actually received. She also seeks the certification of a national class of litigants who experienced a similar plight in their dealings with FedEx. She offers herself as the representative of that class.

The contract between Moody and FedEx lists two remedies for a delayed shipment: (1) actual damages to the shipment as a result of the delay, measured by the least among (a) the shipment’s repair cost, (b) its replacement cost, (c) its depreciated value, or (d) a preset value declared by Moody at the time she shipped or (2) a full refund of her shipping charges under the FedEx money-back guarantee. To seek damages under alternative (1), the customer was required to give notice to FedEx within 15 days after the delivery of the shipment. To seek a refund for a delayed shipment, a request was required to be made within 30 days. Moody does not allege any damages to the package, nor did she seek a refund of her money; instead, she seeks a partial refund of her shipping charges for the delayed shipment.

FedEx moved for a judgment on the pleadings pursuant to section 2 — 615 of the Code of Civil Procedure (Code) (735 ILCS 5/2 — 615 (West 2002)) on April 29, 2005. In its motion, FedEx argued, inter alia, that Moody’s breach-of-contract claim was preempted by the Airline Deregulation Act. FedEx argued that Moody’s breach-of-contract claim violated the Airline Deregulation Act because it sought a remedy outside the four corners of the contract. In response, Moody argued that her breach-of-contract claim was not preempted by the Airline Deregulation Act because the price-difference remedy she sought was a common law remedy permitted by her contract with FedEx and that she could seek this remedy because FedEx’s contractual remedies for delayed shipment were not exclusive. FedEx replied that Moody’s sought-after remedy was not even allowed at common law and that a reasonable construction established that the contractual remedies were exclusive.

The trial court heard FedEx’s motion for a judgment on the pleadings on August 12, 2005. The trial court agreed with FedEx and held that Moody’s breach-of-contract claim was preempted by the Airline Deregulation Act because it was not based on the actual terms of Moody’s contract. The court did not grant FedEx’s motion pursuant to section 2 — 615(e) of the Code (735 ILCS 5/2 — 615(e) (West 2002)). Instead, it dismissed Moody’s action pursuant to section 2 — 619 of the Code (735 ILCS 5/2 — 619 (West 2002)). No class of litigants was certified. We affirm the lower court on the basis that the contract between Moody and FedEx lists exclusive remedies different from the remedy sought by Moody.

ANALYSIS

The trial court dismissed the plaintiffs claim pursuant to section 2 — 619 of the Code, finding the claim preempted by the Airline Deregulation Act. Section 2 — 619(a)(9) permits the dismissal of a claim when “the claim asserted *** is barred by other affirmative matter avoiding the legal effect of or defeating the claim.” 735 ILCS 5/2— 619(a)(9) (West 2002); Glisson v. City of Marion, 188 Ill. 2d 211, 220 (1999). “The phrase ‘affirmative matter’ refers to something in the nature of a defense that negates the cause of action completely or refutes crucial conclusions of law or conclusions of material fact contained in or inferred from the complaint.” Glisson, 188 Ill. 2d at 220. The standard of review for an order granting a motion to dismiss pursuant to section 2 — 619(a)(9) is de novo. Glisson, 188 Ill. 2d at 220. We may, however, affirm the lower court on any basis in the record, regardless of whether the trial court considered that basis or whether its decision is actually supported by the bases it did consider. Bell v. Louisville & Nashville R.R. Co., 106 Ill. 2d 135, 148 (1985).

We need not reach the issue of preemption even if Moody’s calculation of damages is consistent with Illinois common law for the breach of a shipping contract. A reasonable construction of the contract at issue establishes that the listed remedies were intended to be exclusive, and we may therefore limit our analysis to the parties’ bargain. In American Airlines, Inc. v. Wolens, 513 U.S. 219, 222, 130 L. Ed. 2d 715, 721, 115 S. Ct. 817, 820 (1995), the United States Supreme Court held that the Airline Deregulation Act’s preemption prescription bars state-imposed regulation of air carriers but allows room for the court enforcement of contract terms set by the parties themselves.

Illinois courts presume that a contract sets forth the entire agreement between the parties. Veath v. Specialty Grains, Inc., 190 Ill. App. 3d 787, 797 (1989). The parties’ rights under a contract are limited by the terms expressed therein (O’Shield v. Lakeside Bank, 335 Ill. App. 3d 834, 839 (2002)), and a contract must be read in its entirety and effect given to each of its provisions (Kimball Hill Management Co. v. Roper, 314 Ill. App. 3d 975, 980 (2000)). Illinois courts have recognized and enforced exclusive remedy provisions, even when the contract omits the word “exclusive,” when the contract as a whole warrants that construction. O’Shield, 335 Ill. App. 3d at 839; Omnitrus Merging Corp. v. Illinois Tool Works, Inc., 256 Ill. App. 3d 31, 34 (1993); Veath, 190 Ill. App. 3d at 797. An exclusive remedy clause will be enforced unless it violates public policy or something in the social relationship of the parties works against upholding the clause. W.E. Erickson Construction, Inc. v. Chicago Title Insurance Co., 266 Ill. App. 3d 905, 910 (1994).

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Cite This Page — Counsel Stack

Bluebook (online)
858 N.E.2d 918, 368 Ill. App. 3d 838, 306 Ill. Dec. 860, 2006 Ill. App. LEXIS 962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moody-v-federal-express-corp-illappct-2006.