Peyton v. Railway Express Agency, No. 903

• Court: United States Supreme Court
• Writing for the Court: PER CURIAM
• Citation: 316 U.S. 350,62 S.Ct. 1171,86 L.Ed. 1525
• Parties: PEYTON v. RAILWAY EXPRESS AGENCY, Inc., et al
• Decision Date: 25 May 1942
• Docket Number: No. 903

316 U.S. 350 62 S.Ct. 1171 86 L.Ed. 1525 PEYTON

v.

RAILWAY EXPRESS AGENCY, Inc., et al.

No. 903. Submitted May 1, 1942. Decided May 25, 1942.

Mr. Robert L. Peyton pro se.

Mr. Harry S. Marx and Mr. Charles C. Evans, both of New York City, for respondents.

PER CURIAM.

Petitioner brought this suit in the District Court for the Western District of Texas, alleging that respondent, known to be an interstate carrier, had negligently failed to deliver to the addressee in California a package shipped from Waco, Texas, and claiming damages in the sum of $750,000. The trial court ordered petitioner to attach to his complaint a copy of the express receipt which he received

Page 351

upon delivering the package to respondent. This receipt contained a $50 valuation. Thereupon the court granted respondent's motion to dismiss the complaint on the ground that the amount in controversy was less than the $3,000 necessary to sustain jurisdiction under 28 U.S.C. § 41(1), 28 U.S.C.A. § 41(1), Jud.Code § 24(1). The Court of Appeals for the Fifth Circuit affirmed. We granted certiorari to inquire whether the suit could be maintained under 28 U.S.C. § 41(8), 28 U.S.C.A. § 41(8), Jud.Code § 24(8), granting the district courts jurisdiction 'Of all suits and proceedings arising under any law regulating commerce', irrespective of the amount involved.

The pertinent act of Congress is 49 U.S.C. § 20(11), 49 U.S.C.A. § 20(11), originally the Carmack Amendment of 1906, 34 Stat. 593, since amended several times to its present form. The section requires an interstate common carrier receiving property for shipment to issue a receipt or bill of lading. The carrier is made liable to the holder 'for any loss, damage, or injury to such property caused by it' or connecting carriers. If the injury does not occur on the initial carrier's line, but it responds in damages, it is entitled to recover over from the responsible carrier. Further, the initial carrier is made liable to the shipper for full damages sustained, notwithstanding any limitation of liability in the receipt or bill of lading, with the exception, important here, that where a carrier by authority or direction of the Interstate Commerce Commission maintains rates dependent upon the value of the property declared in writing by the shipper, such declaration also limits liability of the carrier for loss or damage to an amount not in excess of the declared value.

Following the Carmack Amendment, this Court in several cases upheld the power of the receiving carrier to limit its liability to an agreed valuation, made to obtain the lower of two or more rates. See Adams Express Co. v.

Page 352

Croninger, 226 U.S. 491, 33 S.Ct. 148, 57 L.Ed. 314, 44 L.R.A.,N.S., 257; Missouri, K. & T. Ry. v. Harriman, 227 U.S. 657, 33 S.Ct. 397, 57 L.Ed. 690; Pierce Co. v. Wells, Fargo & Co., 236 U.S. 278, 35 S.Ct. 351, 59 L.Ed. 576. The socalled First Cummins Amendment of March 4, 1915, 38 Stat. 1196, 49 U.S.C.A. § 20(11), prohibited in general any such limitation of liability. By the Second Cummins Amendment of August 9, 1916, 39 Stat. 441, 49 U.S.C.A. § 20(11), Congress adopted the...