Starr Indemnity & Liability Company, Inc. v. JPF Inc

CourtDistrict Court, D. Minnesota
DecidedOctober 7, 2025
Docket0:22-cv-03007
StatusUnknown

This text of Starr Indemnity & Liability Company, Inc. v. JPF Inc (Starr Indemnity & Liability Company, Inc. v. JPF Inc) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Starr Indemnity & Liability Company, Inc. v. JPF Inc, (mnd 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

STARR INDEMNITY & LIABILITY Case No. 22-cv-3007 (LMP/DTS) COMPANY, INC. a/s/o Breakthru Beverage Minnesota Wine & Spirits, LLC, and BREAKTHRU BEVERAGE MINNESOTA WINE & SPIRITS, LLC,

Plaintiffs,

v. ORDER ON MOTIONS FOR JPF INC., JRO GLOBAL, INC., and SUMMARY JUDGMENT EASY EXPRESS,

Defendants.

JPF INC.,

Third-Party Plaintiff,

v.

JRO GLOBAL, INC.,

Third-Party Defendant.

John T. Lillis, Jr., Kennedy Lillis Schmidt & English, New York, NY, for Plaintiffs Starr Indemnity & Liability Company, Inc. and Breakthru Beverage Minnesota Wine & Spirits, LLC.

Jason E. Engkjer and Schaefer D. Whiteaker, DeWitt LLP, Minneapolis, MN, for Defendant and Third-Party Plaintiff JPF Inc.

Daniel R. Savaloja, Law Offices of Daniel R. Savaloja, PLLC, Blaine, MN, for Defendant Easy Express, LLC. Breakthru Beverage Wine & Spirits, LLC (“BTB”) is a wholesale wine, spirit, and beer distributor. In 2021, BTB purchased liquor from the Jack Daniel’s distillery in

Tennessee. ECF No. 1 ¶ 16. BTB hired Defendant JPF Inc. (“JPF”), with whom it had a long-standing relationship, to arrange transportation for the shipment to Minnesota. Id. ¶ 17. JPF, in turn, hired Defendant JRO Global, Inc. (“JRO”) to transport the liquor, id. ¶ 21, who in turn contracted with Defendant Easy Express for the transport, id. ¶ 22. Although the liquor was picked up in Tennessee, it never made it to Minnesota and is presumed stolen. Id. ¶¶ 25–26. BTB estimated that it lost $288,621.25 and submitted an

insurance claim to Starr Indemnity & Liability Company, Inc. (“Starr”), who paid $188,621.25 to settle the claim with BTB. Id. ¶ 28. On December 1, 2022, Starr brought this action against Defendants, alleging that each breached a contract of motor carriage made pursuant to the Carmack Amendment, 49 U.S.C. § 14706 et seq., and that JPF is alternatively liable under a theory of negligence.

Id. ¶¶ 30–46. JPF answered and brought a crossclaim against JRO for breach of contract. ECF No. 21 at 11. JRO has never appeared in this litigation, and the Clerk of Court entered default judgment against JRO on April 28, 2023. ECF No. 22. JPF and Easy Express now move for summary judgment against Starr. ECF Nos. 43, 49. JPF argues that it is not subject to the Carmack Amendment and that Starr’s

negligence claim is preempted by federal law or otherwise meritless. See generally ECF No. 44. Easy Express argues that it performed its contract and is therefore not liable under any theory of liability. See generally ECF No. 50. Because genuine disputes of material fact preclude summary judgment for either JPF or Easy Express on Starr’s Carmack Amendment claim, the Court denies summary

judgment on those claims. But because Starr has abandoned its negligence claim, the Court grants JPF summary judgment on that claim. BACKGROUND I. BTB’s July 2021 Shipment is Lost In June 2021, BTB contracted with Brown-Forman Beverages Worldwide (“Brown- Forman”), the owner of the Jack Daniel’s distillery in Lynchburg, Tennessee, for the

purchase of liquor. ECF No. 58-1. Brown-Forman prepared a purchase order indicating that the shipment was to be delivered to BTB’s address in St. Paul, Minnesota, “via JPF Inc.” Id. at 2–3. At some point after the purchase, BTB came to an oral agreement with JPF to assist in transporting the liquor from Tennessee to Minnesota, with a requested shipping date of

July 3, 2021. ECF No. 46 ¶¶ 13–14; ECF No. 58 ¶ 13. That agreement was reflected in a bill of lading in which “JPF Inc.” is listed as the “carrier” or “shipper.” ECF No. 46-4 at 1. The bill of lading also included a note under the heading “carrier information” to “send email to both of JPF contact[s],” and listed two employees of JPF along with their email addresses. Id. at 1. BTB and JPF agree that Brown-Forman created the bill of lading, ECF

No. 58 ¶ 18; ECF No. 46 ¶ 29, but BTB acknowledges that it “assigned JPF as BTB’s carrier” in the initial purchase order, ECF No. 58 ¶ 13. Brown-Forman did not have the order ready on July 3, 2021, and informed JPF that the order would be ready for pickup on July 21, 2021. ECF No. 46 ¶ 15. JPF, which identifies itself as a “broker,” id. ¶ 5, states that because the carrier it usually used to transport liquor from Tennessee to Minnesota was unavailable, it had to find an alternative.

Id. ¶ 15. JPF eventually identified JRO as a carrier capable of handling the shipment. Id. ¶ 16–17. JPF then executed a “carrier/broker” agreement with JRO, which identifies JRO as the carrier and JPF as the broker. ECF No. 46-2. The agreement further states that JRO agreed that “[s]hipper’s insertion of [JPF]’s name as the carrier on the bill of lading shall be for shipper’s convenience only and shall not change [JPF]’s status as a property broker nor [JRO]’s status as a motor carrier.” Id. at 2. The agreement also stated that JRO was

not allowed to reassign the shipment to another carrier without JPF’s written consent. Id. JRO, unbeknownst to JPF, assigned the load to Easy Express through “AB Broker Inc.” ECF No. 46-5; ECF No. 46 ¶¶ 33–34. Easy Express identifies itself as a carrier that “would often work with Freight Brokers” in “booking loads for transport by Easy.” ECF No. 51 ¶ 6. In so doing, it does not contract directly with the shipper or the receiver, but

instead solely with the broker. Id. ¶¶ 7–8. On July 23, 2021, Easy Express executed a “load confirmation” with AB Broker (“AB”). ECF No. 46-5. Within the confirmation, AB notated to Easy Express that the shipment was a “blind shippment [sic]” and told Easy Express to “check in [a]s JRO Global” and to “make sure driver say[s] load going to: St. Paul, MN.” ECF No. 46-5. However, the confirmation stated that Easy Express should

deliver the shipment to an address in Illinois. Id. The bill of lading, which included the correct address for BTB in Minnesota and was issued by Brown-Forman on July 23, 2021, confirmed that the load was picked up on that date by a driver from Easy Express. ECF No. 46-4. But the load never made it to Minnesota. Instead, according to the load confirmation, Easy Express delivered the shipment to Illinois. ECF No. 51 ¶¶ 18–19. Indeed, Easy Express states that “blind

shipments” are common in the freight industry and are “where we pick up a load and on the bill of lading, we see one delivery address[,] but we actually need to deliver to another one.” Id. ¶ 13. Easy Express’s assumption is that once it delivers to the new address, “the broker most likely consolidates the load and gets another carrier to finish the shipment.” Id. Easy Express states that it was “contractually required to follow the delivery instructions provided to it by AB.” Id. ¶ 18. Thus, despite the bill of lading indicating a

St. Paul delivery address, Easy Express delivered the shipment to Illinois. Id. ¶ 19. Shortly after the product was supposed to have been delivered, BTB called JPF directly to ask where it was. ECF No. 58 ¶ 24; ECF No. 46 ¶ 28. BTB states that in that call, JPF’s president “explained that he could not get his usual trucker in time to meet BTB’s delivery appointment, so he panicked and posted the load online late Friday

afternoon to a broker bid board.” ECF No. 58 ¶ 25. JPF thereafter called Brown-Forman directly, who informed JPF that the load had been picked up and provided JPF with the bill of lading. ECF No. 46 ¶¶ 28–29. That was the first time JPF learned of Easy Express’s involvement. Id. ¶ 30. Because it never reached BTB, the liquor is now presumed stolen. ECF No. 46 ¶ 33.

Pursuant to its purchase order, BTB paid Brown-Forman for the liquor. ECF No. 58 ¶ 21.

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