Nipponkoa Insurance v. Atlas Van Lines, Inc.
2012 U.S. App. LEXIS 13652
7th Cir.2012Background
- Carmack Amendment applies to Atlas’s interstate shipment; Atlas argues liability limited to $0.60/lb per contract and tariff.
- Shipment designated as Exhibit Shipment; special Exhibit Guard coverage may affect Carmack-compatibility.
- Intermediaries ACS and Comtrans arranged the shipment and may bind Atlas or shipper to liability terms.
- Atlas cites ACS-Atlas contract and bill of lading as two Carmack-compliant limits on liability.
- District court granted summary judgment to Atlas; this court reverses and remands for record development.
- Record shows disputed roles of ACS and Comtrans; traceability of authorization to bind TAMS is unclear.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Do ACS-Atlas contract and bill of lading bind TAMS to a Carmack-limited liability? | Nipponkoa: contracts bind TAMS to limit. | Atlas: contracts create two Carmack options; TAMS bound. | No clear binding; record requires further development. |
| Are ACS or Comtrans proper intermediaries under Kirby to bind shipper to liability terms? | TAMS did not authorize intermediaries to bind; disputes on intermediary role. | Kirby framework supports intermediary-bound liability. | Issue of intermediary status unresolved; remand appropriate. |
Key Cases Cited
- Hughes v. United Van Lines, Inc., 829 F.2d 1407 (7th Cir. 1987) (four-step test for Carmack liability limitation)
- Tempel Steel Corp. v. Landstar Inway, Inc., 211 F.3d 1029 (7th Cir. 2000) (adopts Hughes framework for Carmack limits)
- Norfolk S. Ry. Co. v. Kirby, 543 U.S. 14 (U.S. 2004) (intermediary contracts affect carrier's liability to cargo owner)