Essex Insurance Company, Et Alv.Barrett Moving & Storage, Inc., Et Al
An MRI was shipped from Illinois to Texas in two pieces, and the magnet was irreparably damaged during transportation. The owner and its insurer sued Barrett Moving and Storage and Landstar Transportation under the Carmack Amendment, which governs carrier liability for interstate cargo loss. The district court granted summary judgment for the plaintiffs, treating Barrett as a carrier and holding both companies jointly liable. The Eleventh Circuit reversed. Conflicting evidence existed about whether Barrett acted as a carrier or broker, so that issue had to be resolved at trial rather than on summary judgment. The court also held that Landstar could rely on a liability limitation negotiated in its broker-carrier agreement with Barrett, even though the owner did not know Landstar would transport the magnet. Under the circuit’s precedent, the intermediary could act as the shipper’s agent in selecting a downstream liability level, and the bill of lading supplied the applicable one-dollar-per-pound limit. The court vacated the judgments against both defendants and remanded for further proceedings.
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