Carrier Services Group, Inc. v. Schneider Logistics, Inc.
4:15-cv-02626
N.D. OhioSep 26, 2017Background
- Carrier Services Group bought 38 used telecommunications equipment towers from ATS for $25,000 and hired Schneider Logistics to arrange transport; Rowland was brokered to carry 25 of those towers.
- Rowland picked up the 25 towers on August 4, 2015, accompanied by a clean bill of lading; Rowland drivers have a company "no-touch" policy and did not assist with loading.
- On delivery to Carrier's Ohio warehouse on August 6, 2015, five of the 25 towers were noted on the bill of lading as fallen and damaged; Carrier's CEO later declared the entire 25-piece load to be "scrap."
- Carrier did not test any equipment or produce objective valuation evidence; photographic evidence and the bill of lading showed only five fallen units and 20 apparently intact units.
- Carrier sued under the Carmack Amendment (49 U.S.C. §14706). Rowland moved for summary judgment arguing Carrier failed to establish a prima facie Carmack claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Carrier prove initial receipt in good condition? | Clean bill of lading and ATS supervisor affidavit show towers were undamaged at pickup. | Rowland: "no-touch" policy and hidden internal components mean carrier lacked opportunity to inspect; carrier can't rely on bill for unseen parts. | Held for Carrier: clean bill of lading and evidence of visibility of towers establish initial good condition. |
| Did Carrier prove loss or damage to the shipment? | Carrier: all 25 pieces were damaged (CEO testimony); entire load was "scrap." | Rowland: only five pieces were noted as fallen; photographs and lack of testing undermine claim of total loss. | Split: Carrier proved damage to the five fallen towers but failed to prove damage to the remaining 20. |
| Did Carrier prove amount of actual loss/damages? | Carrier seeks >$160,000 relying on claimed resale value and lost future sales. | Rowland: Carrier provided no testing, invoices, or objective valuation; lost profits speculative. | Held for Rowland as to excess damages: Carrier cannot recover beyond proof; no admissible evidence supports damages beyond the five damaged units' actual loss. |
| Do any Carmack exceptions excuse Rowland's liability? | Carrier: N/A (no exception argued). | Rowland: alleged lack of opportunity to inspect, suggesting non-liability. | Held for Carrier: Rowland failed to raise a statutory Carmack exception; liability stands for the proven damaged units. |
Key Cases Cited
- Anderson v. Liberty Lobby, 477 U.S. 242 (summary judgment standard)
- Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment burden-shifting)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (drawing inferences on summary judgment)
- Missouri Pac. R.R. v. Elmore & Stahl, 377 U.S. 134 (Carmack exceptions)
- Southern Pacific Transportation Co. v. Commercial Metals Co., 456 U.S. 336 (bill of lading as contract)
- CNA Ins. Co. v. Hyundai Merchant Marine Co., 747 F.3d 339 (Carmack prima facie elements; low evidentiary threshold)
- Sec. Ins. Co. v. Old Dominion Freight Line, Inc., 391 F.3d 77 (clean bill of lading effect when inspection possible)
- Allied Tube & Conduit Corp. v. Southern Pacific Transportation Co., 211 F.3d 367 (sampling/testing to establish damage to whole shipment)
- Camar Corp. v. Preston Trucking Co., 221 F.3d 271 (measuring actual loss under Carmack)
