Smallwood v. Allied Van Lines, Inc.
660 F.3d 1115
9th Cir.2011Background
- Smallwood contracted with AVL to move some goods to the UAE and store the rest in California; the box of firearms was shipped to the UAE.
- UAE authorities arrested Smallwood upon discovery of firearms, leading to imprisonment and a guilty plea for gun smuggling.
- The last written agreement before shipment included a Dubai arbitration clause, in the Acceptance of Quotation on Allied Pickfords' letterhead.
- District court held Carmack Amendment preempts some claims and precludes enforcement of a foreign arbitration clause under Carmack.
- AVL sought to compel arbitration under the foreign clause; court and Ninth Circuit address Carmack's venue/arbitration protections and preemption.
- This appeal concerns whether the Carmack Amendment prevents enforcing a foreign arbitration clause when the shipment involves interstate/foreign elements.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Carmack preclude foreign arbitration? | Smallwood: Carmack blocks foreign arbitration by shipper-protection venues. | AVL: Carmack permits or does not bar foreign arbitration under FAA considerations. | Foreign arbitration clauses are unenforceable under Carmack. |
| Can FAA/convention override Carmack to enforce arbitration? | Smallwood argues FAA governs and favors arbitration. | AVL argues FAA/Convention Act should enforce arbitration. | Carmack controls; FAA/Convention Act does not override Carmack here. |
| Does Carmack’s forum-venue protection apply to this shipper? | Smallwood retains enumerated venues; arbitration is improper at contracting. | AVL contends arbitration could be chosen post-dispute. | Carmack requires shipper-access to enumerated venues after dispute; foreign arbitration is impermissible. |
Key Cases Cited
- Kawasaki Kisen Kaisha Ltd. v. Regal-Beloit Corp., 130 S. Ct. 2433 (U.S. 2010) (Carmack venue framework; forum restrictions apply to household-goods carriers)
- Regal-Beloit Corp. v. Kawasaki Kisen Kaisha Ltd., 557 F.3d 985 (9th Cir. 2009) (interpretation of Carmack; venue restrictions for shippers)
- Fireman's Fund Ins. Co. v. M.V. DSR Atl., 131 F.3d 1336 (9th Cir. 1997) (foreign forum clauses as subset of foreign forum-selection clauses)
- Sky Reefer, U.S. v. M/V Sky Reefer, 515 U.S. 528 (1995) (COGSA rationale not controlling for Carmack's venue protections)
- Aaacon Auto Transp., Inc. v. State Farm Mut. Auto. Ins. Co., 537 F.2d 648 (2d Cir. 1976) (early reasoning on forum-selection and Carmack analysis)
- Campbell v. Allied Van Lines Inc., 410 F.3d 618 (9th Cir. 2005) (background on Carmack and shipper protections)
- Rogers v. Royal Caribbean Cruise Line, 547 F.3d 1148 (9th Cir. 2008) (arbitrability and federal arbitration policy)
- In re Glacier Bay, 944 F.2d 577 (9th Cir. 1991) (override considerations between FAA and later statutes)