Siemens Power Transmission & Distribution, Inc. v. Norfolk Southern Railway Co.

420 F.3d 1243, 2005 U.S. App. LEXIS 17202, 18 Fla. L. Weekly Fed. C 839
CourtCourt of Appeals for the Eleventh Circuit
DecidedAugust 16, 2005
Docket04-14410
StatusPublished
Cited by17 cases

This text of 420 F.3d 1243 (Siemens Power Transmission & Distribution, Inc. v. Norfolk Southern Railway Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Siemens Power Transmission & Distribution, Inc. v. Norfolk Southern Railway Co., 420 F.3d 1243, 2005 U.S. App. LEXIS 17202, 18 Fla. L. Weekly Fed. C 839 (11th Cir. 2005).

Opinion

BIRCH, Circuit Judge:

This appeal presents two issues of first impression in our circuit: (1) whether a shipper’s timely compliance with the minimum claim filing requirements in 49 C.F.R. § 1005.2(b), a regulation promulgated by the Interstate Commerce Commission (“ICC”), is a prerequisite to filing suit against a carrier under the Carmack Amendment, 49 U.S.C. § 14706; 1 and if so, (2) what standard should be applied to determine whether a shipper has adhered to the regulation’s requirement that a claim contain “a specified or determinable” amount of damages, 49 C.F.R. § 1005.2(b). We hold that a shipper must file with the carrier a notice of a claim that satisfies § 1005.2(b) before filing suit under the Carmack Amendment. We also conclude, however, that § 1005.2(b) should be interpreted liberally in light of its purpose, which is to provide the carrier adequate notice of the claim so that it can conduct an independent investigation of the damage, not to relieve the carrier of liability.

Applying this standard here, we conclude that the notice of claim for damage caused to an electrical transformer shipped by rail, submitted by Siemens Power Transmission and Distribution, Inc. (“Siemens”), to Norfolk Southern Railroad (“NSR”), satisfies the minimum claim requirements of § 1005.2(b) as a matter of law. We thus REVERSE and REMAND for proceedings consistent with this opinion.

I. BACKGROUND

In the Spring of 1999, Siemens entered into an agreement with Florida Power and Light Company (“FP&L”) for the sale of an electrical transformer. As part of the agreement, Siemens agreed to arrange and pay for the transportation and delivery of the transformer to FP&L’s facility in Florida.

In order to carry out this obligation, Siemens retained a transportation consultant, Tranco, Inc. (“Tranco”), to arrange for shipment of the transformer from Norfolk, Virginia, to Florida. Edward Henry, Tranco’s president, acted as Siemens’s agent for purposes of communicating with rail carriers. In March 1999, Henry ap *1246 proached NSR about possibly shipping the transformer to Florida by rail. Additionally, Siemens installed an electronic impact recorder to record any excessive shocks that might occur during transportation and cause damage to the transformer.

Shipped from Germany by ocean vessel, the transformer arrived in Norfolk, Virginia, on 15 January 2000. On 17 January 2000, Henry issued NSR a Straight Bill of Lading (“the Bill of Lading”). The Bill of Lading incorporated by reference the terms of the Uniform Straight Bill of Lading (“USBL”). 2 Pursuant to the Bill of Lading, NSR undertook the carriage of the transformer to FP&L’s facility in Florida. The transformer arrived at FP&L’s facility on 28 January 2000. 3

After the transformer arrived, the electronic impact recorder that had been installed in the transformer was retrieved and read. The recorder indicated that the transformer had been exposed to forces in excess of Siemens’s established thresholds for safe carriage of the device. Additional tests revealed that the transformer was not operating properly and needed repair. According to Siemens, all of the forces that caused damage to the transformer had occurred while NSR had custody and control over the device. 4

On 1 March 2000, Henry sent NSR a letter indicating Siemens’s intent to claim the costs of the repair of the transformer:

Please accept this letter as our intent to file a claim for damage to an electrical transformer moving from the Port of Norfolk, VA to Titusville, FL on QTTX-131117,1/21/00.
The computerized impact recorder showed longitudinal impacts on 1/21/00 at 4.85, 5.95 and 4.37 G’s. Time approximately 4:00 P.M. The load was in a train moving from Crew, VA to Linwood, NC.
Upon an interior inspection damage was noted and Siemens technical engineers are evaluating the damage.
At this time we cannot state a cost for repairs but will send you a report when available. Siemens estimated repairs at $25,000.00.

R2-51, Ex. 1. On 2 March 2000, Henry sent a fax to NSR “regarding [its] possible claim” and invited NSR to send a representative to an inspection of the transformer conducted by a Siemens team. Id., Ex. 3. According to Siemens, NSR neither responded to either communication nor sent a representative to the inspection.

After inspecting the transformer in Florida, Siemens decided to ship the transformer back to Germany for repairs. By letter dated 5 April 2000, Henry informed NSR that “[a]t this time, Siemens is estimating a total cost of $700,000.00-$800,000.00 and that is the amount of our claim. This covers transportation back to Germany, repairs, and return to FP&L at Cape Canaveral, FL.” Id., Ex. 4. Henry also stated that “Mr. Costa, Siemens insur- *1247 anee company’s representative, will be inspecting the unit at Cape Canaveral on Monday, April 10, 2000. We feel [NSR] should have their representative at this inspection to protect your interests.” Id. According to Siemens, NSR sent a transformer consultant to conduct an investigation of the transformer.

On 18 April 2000, Henry wrote NSR and stated that it planned to ship the transformer to Germany “[u]nless [it] hear[d] differently from [NSR] within 72 hours.” R2-37, Ex. L. After the transformer arrived in Germany, Henry told NSR that the transformer would be “opened for inspection” on 14 June 2000 “so if [NSR] wanted [its inspector] at this inspection he could make plans to attend.” R2-37, Ex. M.

In September 2002, Siemens initiated an action against NSR in the United States District Court for the Middle District of Florida and sought $791,136 for damages to the transformer. Rl-1 ¶ 11, at 3. Siemens alleged that it had timely filed a proper claim for damages with NSR prior to bringing suit. At the close of discovery, NSR moved for summary judgment on the ground that Siemens had not satisfied the condition precedent for bringing suit because it had not filed a valid claim with NSR within nine months of the damage to the transformer.

Concluding that Siemens’s suit was barred, the district court granted NSR’s motion. The district court stated that the ICC claims regulations 5 provide the applicable minimum standards for a written notice of a freight claim. Noting that, in Farmland Industries, Inc. v. Seaboard Coast Line Railroad Co., 733 F.2d 1509

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Bluebook (online)
420 F.3d 1243, 2005 U.S. App. LEXIS 17202, 18 Fla. L. Weekly Fed. C 839, Counsel Stack Legal Research, https://law.counselstack.com/opinion/siemens-power-transmission-distribution-inc-v-norfolk-southern-railway-ca11-2005.