Tokio Marine & Fire Insurance Group v. J.J. Phoenix Express, Ltd.

156 F. Supp. 2d 889, 2002 A.M.C. 380, 2001 U.S. Dist. LEXIS 3750
CourtDistrict Court, N.D. Illinois
DecidedMarch 30, 2001
DocketNo. 99 C 6439
StatusPublished
Cited by7 cases

This text of 156 F. Supp. 2d 889 (Tokio Marine & Fire Insurance Group v. J.J. Phoenix Express, Ltd.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tokio Marine & Fire Insurance Group v. J.J. Phoenix Express, Ltd., 156 F. Supp. 2d 889, 2002 A.M.C. 380, 2001 U.S. Dist. LEXIS 3750 (N.D. Ill. 2001).

Opinion

MEMORANDUM OPINION AND ORDER

LEFKOW, District Judge.

Nissin International Transport U.S.A., Inc. (“Nissin”), third-party defendant, moves for summary judgment on Aireo International, Inc.’s (“Aireo”) First Amended Third Party Complaint for indemnity and contribution from Nissin. For the reasons stated below, the court grants the motion.

BACKGROUND

This case involves the issue of where liability will ultimately lay for cargo that was' to be transported from Illinois to Minnesota but was stolen before it arrived at its destination. Plaintiff, Tokio Marine & Fire Insurance Group (“Tokio”), as subrogee of Tanita Corp. of America (“Tanita”), has sued defendants J.J. Phoenix Express, Ltd. (“J.J.Phoenix”) and Air-eo International, Inc. (“Aireo”), incorrectly named as Aireo, Inc., in a First Amended ■Complaint (hereafter “amended complaint”) alleging claims against both defendants under the Carmack Amendment, 49 U.S.C. § 14706, as well as common law claims of bailment and negligence. Tokio alleges that on or about November 18, 1997, Tanita, through its agent, contracted with Aireo, a common carrier, and/or1 J.J. Phoenix, a common carrier, to transport a [891]*891cargo of scales which weigh a human’s body fat from Nissin’s warehouse in Illinois to Glencoe, Minnesota. (Am. Compl.¶¶ 3-4, 7, 18.) The same day, Air-eo and/or J.J. Phoenix issued a Bill of Lading acknowledging receipt of these goods from the Nissin warehouse for delivery to Minnesota, loaded and signed for the cargo and then transported it to their terminal in Elk Grove Village, Illinois. The cargo was to remain there until the next morning when it was to be delivered to Minnesota. (Id. at ¶¶ 8-9, 18-19.) The Bill of Lading lists Aireo as the carrier and “Tanita Corp. c/o Nissin Int’l” as the shipper. (Id. at Ex. A.) At the time that Aireo and/or J.J. Phoenix received the cargo, it was in good order and condition, but the cargo was not delivered in like good order and condition but, rather, was lost and never recovered. (Id. at ¶¶ 10, 12, 20, 22.) Tokio alleges that as a result of the loss, Tanita was damaged in the amount of $121,400. (Id. at ¶¶ 13, 23.)

Aireo filed a cross-claim against J.J. Phoenix. Aireo also filed a third party complaint against Nissin for reimbursement alleging that Nissin negligently issued the Bill of Lading and failed to handle the cargo to avoid loss or was otherwise negligent. Nissin moved to dismiss the third party complaint, and Judge Shadur dismissed with leave to re-plead if Aireo could do so in good faith. See Tokio Marine & Fire Ins. Group v. J.J. Phoenix Express, Ltd., 104 F.Supp.2d 946, 949 (N.D.Ill.2000). Subsequently, Aireo filed a First Amended Third Party Complaint (hereafter “amended third party complaint”), the complaint at issue here, against Nissin for indemnity and contribution alleging that Nissin is a freight forwarder under the Carmack Amendment and strictly ha-ble for any loss that Airco incurs to Tokio. In the amended third party complaint, Airco alleges the following facts: Airco is a broker of transportation services and Nissin is a freight forwarder that uses brokers and common carriers in the transportation of goods. Nissin received two shipments of scales from Ta-nita to assemble and assume responsibility for the shipment of the cargo to its destination in Minnesota. Nissin contacted Airco to select a carrier for the transportation of the cargo, and, Airco, in turn, selected and contracted with J.J. Phoenix to pick up the cargo from Nissin’s warehouse. Nissin issued a bill of lading for transportation of the cargo from its warehouse in Illinois to Glencoe, Minnesota. On the evening of November 18, 1997, a J.J. Phoenix driver arrived with a trailer at Nissin’s warehouse in Wood Dale, Illinois, Nissin loaded the cargo on the trailer, J.J. Phoenix signed the bill of lading and transported the cargo to its terminal in Elk Grove Village, Illinois where it was to remain until the next morning, but on the morning of November 19, the trailer and its cargo were discovered missing and believed stolen. (First Am. Third Party Compl. ¶¶ 4-12.)

Nissin moves for summary judgment arguing that (1) there is no strict liability third party claim for indemnity or contribution under the Carmack Amendment but Airco must plead and prove negligence, which Airco cannot do because it is undisputed that the cargo was stolen while in the J.J. Phoenix’s possession; and (2) even under the strict liability theory alleged by Airco, Nissin was not acting as a freight forwarder for the cargo.2 Because this [892]*892court considers resolution of Nissin’s first argument dispositive of the motion, it does not reach the second argument.

SUMMARY JUDGMENT STANDARDS

Summary judgment obviates the need for a trial where there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). To determine whether any genuine issue of material fact exists, the court must pierce the pleadings and assess the proof as presented in depositions, answers to interrogatories, admissions, and affidavits that are part of the record. Fed R. Civ. P. 56(c) Advisory Committee’s notes. The party seeking summary judgment bears the initial burden of proving there is no genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). In response, the non-moving party cannot rest on bare pleadings alone but must use the evidentiary tools listed above to designate specific material facts showing that there is a genuine issue for trial. Id. at 324, 106 S.Ct. 2548; Insolia v. Philip Morris Inc., 216 F.3d 596, 598 (7th Cir.2000). A material fact must be outcome determinative under the governing law. Insolia, 216 F.3d at 598-599. Although a bare contention that an issue of fact exists is insufficient to create a factual dispute, Bellaver v. Quanex Corp., 200 F.3d 485, 492 (7th Cir.2000), the court must construe all facts in a light most favorable to the non-moving party as well as view all reasonable inferences in that party’s favor. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

DISCUSSION

Airco’s amended third party complaint seeks indemnity and contribution from Nissin under the Carmack Amendment for any liability it may incur to Tokio.3 In Count I, Airco seeks indemnity to the extent Airco is found liable to Tokio and in Count II, Airco seeks contribution from Nissin for the amount beyond Airco’s pro rata share. As an initial matter, although Aireo asserts in its amended third party complaint that it is a broker in its relationship with Nissin, this designation is irrelevant to Airco’s indemnity and contribution claims against Nissin under the Carmack Amendment for Carmack liability it may incur to Tokio since (as set forth in more detail herein) only carriers or freight forwarders can be liable to shippers under the Carmack Amendment.

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156 F. Supp. 2d 889, 2002 A.M.C. 380, 2001 U.S. Dist. LEXIS 3750, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tokio-marine-fire-insurance-group-v-jj-phoenix-express-ltd-ilnd-2001.