Exel, Inc. v. S. Refrigerated Transp., Inc.
Decision Date | 08 May 2017 |
Docket Number | Case No. 2:10–CV–994 |
Citation | 259 F.Supp.3d 767 |
Parties | EXEL, INC. f/u/b/o Sandoz, Inc., Plaintiff, v. SOUTHERN REFRIGERATED TRANSPORT, INC., Defendant. |
Court | U.S. District Court — Southern District of Ohio |
Kendra Lynn Carpenter, Columbus, OH, Andrew R. Spector, Marc A. Rubin, Robert M. Borak, Spector Rubin, P.A., Miami, FL, for Plaintiff.
Thomas H. Dupree, Chantale Fiebig, Gibson, Dunn & Crutcher LLP, Washington, DC, Jeffrey Stupp, Joseph W. Pappalardo, Timothy P. Roth, Gallagher Sharp, Cleveland, OH, Joshua S. Lipshutz, Gibson, Dunn & Crutcher LLP, San Francisco, CA, for Defendant.
A truck filled with millions of dollars' worth of pharmaceuticals was stolen. The trucking company—Southern Refrigerated Transport, Inc. ("SRT")—is at fault. The shipper—Sandoz, Inc. ("Sandoz")—claims that the pharmaceuticals were worth $8.6 million. A federal statute—the Carmack Amendment, 49 U.S.C. § 14706 et seq. —imposes strict liability on motor carriers for "actual loss or injury to property," but a narrow exception applies if the shipper agrees to a limitation of liability. SRT argues that Sandoz drafted shipping documents called bills of lading in which it selected a liability limit of $2.40 per pound of cargo, or $56,766.36. The question before the Court is whether the bills of lading contain a valid limitation of liability.
Sandoz isn't a party to the lawsuit, but it assigned its claim to the company it hired to broker the shipment, Exel, Inc. ("Exel"). Exel thus brings this claim against SRT as the assignee of Sandoz. And on this claim, Exel and SRT both move for summary judgment. Since the purported limitation of liability does not satisfy the requirements placed on carriers by the Carmack Amendment, the Court will GRANT Exel's Motion for Summary Judgment on that issue and will DENY SRT's Motion for Summary Judgment. But the Court cannot grant summary judgment on the issue of damages because it lacks sufficient evidence to decide what measure of damages applies.
The facts have been summarized many times throughout this case, most recently by the Sixth Circuit in its opinion vacating this Court's judgment and remanding the case for further proceedings. Exel, Inc. v. S. Refrigerated Transp., Inc. , 807 F.3d 140 (6th Cir. 2015). Before reciting the facts of this case, it's important to define a few terms that will be used throughout this discussion. There are three relevant parties: Sandoz, the pharmaceutical company; Exel, which brokered the shipment of Sandoz's goods; and SRT, which transported the goods by truck. Three terms apply to these parties throughout the discussion.
A "shipper" is "[s]omeone who ships goods to another." Shipper , Black's Law Dictionary (10th ed. 2014). Here, Sandoz is the shipper.
A "carrier" is "[a]n individual or organization (such as a shipowner, a railroad, or an airline) that contracts to transport passengers or goods for a fee." Carrier , Black's Law Dictionary (10th ed. 2014). Here, SRT is the carrier.
A "broker" is "[a]n agent who acts as an intermediary or negotiator, esp. between prospective buyers and sellers; a person employed to make bargains and contracts between other persons in matters of trade, commerce, or navigation." Broker , Black's Law Dictionary (10th ed. 2014). More specifically to this context, "[t]he Interstate Transportation Act defines ‘broker’ as ‘a person, other than a motor carrier or an employee or agent of a motor carrier, that as a principal or agent sells, offers for sale, negotiates for, or holds itself out by solicitation, advertisement, or otherwise as selling, providing, or arranging for, transportation by motor carrier for compensation.’ " Exel , 807 F.3d at 149 n.7 (quoting 49 U.S.C. § 13102(2) ). Here, Exel is the broker.
The Sixth Circuit recited the facts as follows:
To continue reading
Request your trial-
Certain Underwriters at Lloyd's v. Expeditors Int'l of Wash., Inc.
...doctrine to regulated interstate commerce is still an issue "far from settled." Exel, Inc. v. S. Refrigerated Transport, Inc. , 259 F. Supp. 3d 767, 780 (S.D. Ohio 2017).Where courts have recognized the viability of the material deviation doctrine in the Carmack Amendment context, they have......