Salzstein v. Bekins Van Lines Inc.

• Decision Date: 24 June 1993
• Docket Number: No. 92-1934,92-1934
• Citation: 993 F.2d 1187
• Parties: Fed. Carr. Cas. P 83,866 Richard SALZSTEIN and Candice Salzstein, Plaintiffs-Appellants, v. BEKINS VAN LINES INC., a Nebraska Corporation, et al., Defendants-Appellees. Summary Calendar.
• Court: U.S. Court of Appeals — Fifth Circuit

Page 1187

993 F.2d 1187

Fed. Carr. Cas. P 83,866

Richard SALZSTEIN and Candice Salzstein, Plaintiffs-Appellants, v. BEKINS VAN LINES INC., a Nebraska Corporation, et al.,

Defendants-Appellees.

No. 92-1934

Summary Calendar.

United States Court of Appeals, Fifth Circuit.

June 24, 1993.

Rehearing Denied Aug. 3, 1993.

William G. Potratz, Gregory Oltman, Bixby, Lechner, & Potratz, P.C., Chicago, IL, for Salzsteins.

Jerry R. Selinger, Dallas, TX, Steven C. Malin, Vinson & Elkins, Dallas, TX, for Bekins.

Stephen Blaine Smith, True, Rohde & Sewell, Dallas, TX, for Graebel (all).

Appeal from the United States District Court for the Northern District of Texas.

Before JOLLY, DUHE, and BARKSDALE, Circuit Judges.

DUHE, Circuit Judge:

Richard and Candice Salzstein hired the Appellees, interstate motor carriers, to transport their household goods from Wisconsin to Arizona. En route, the truck carrying some of the Appellants' belongings was in an accident, and its cargo was damaged. The Appellants filed claims for their loss. When the Appellees tendered a settlement offer that was unacceptable to the Salzsteins, they sued. Claiming that the Appellants did not comply with the applicable regulations for filing claims, the Appellees moved for summary judgment, which was granted. We affirm.

I.

This litigation is governed by the Carmack Amendment to the Interstate Commerce Act, 49 U.S.C. § 11707 (Supp.1993), and Interstate Commerce Commission ("ICC") regulations, 49 C.F.R. §§ 1005.1-.7 (1992). These regulations control the processing of claims for loss or damage to property transported by common carriers, including motor carriers, subject to the Interstate Commerce Act. Id. at § 1005.1. Carriers may contractually limit the time for filing claims; however, this limit cannot be less than nine months. See 49 U.S.C. § 11707(e).

At issue is the Appellants' timely compliance vel non with the "Minimum Filing Requirements" set forth in 49 C.F.R. § 1005.2(b):

A written or electronic communication (when agreed to by the carrier and shipper or receiver involved) from a claimant, filed with a proper carrier within the time limits specified in the bill of lading or contract of carriage or transportation and: (1) Containing facts sufficient to identify the baggage or shipment or shipments of property, (2) asserting the liability for alleged loss, damage, injury, or delay, and (3) making claim for the payment of a specified or determinable amount of money, shall be considered as sufficient compliance with the provisions for filing claims[.]

(emphasis added). It is the third requirement, that the claim must request a "specified or determinable amount of money," on which the district court based its decision. It concluded that the Appellants' failure to timely request a specified or determinable amount of money rendered their claim insufficient as a matter of law. This Circuit has not yet had occasion to interpret this provision.

II.

After their goods were damaged, the Appellants contacted the agent who arranged the transportation. ¹ The agent referred them to Bekins's Claim Services. James Whitten, the sole proprietor of Customer Claim Service, was retained by Bekins to assist in the processing of the Appellants' claim. Whitten provided the Salzsteins with Bekins's claim forms, on which they were to list the items damaged and give an approximate value for repair or replacement.

The Appellants concede that they did not fill out the forms completely; under the heading "Amount Claimed," no figures were entered. The Appellants contend, however, that Whitten informed them it was unnecessary to provide this information. The Salzsteins now argue: (1) that they reasonably relied on Whitten's statement, and because of this reliance Bekins is estopped from asserting noncompliance as a defense; (2) that Bekins is estopped from asserting noncompliance because it continued to process their claim past the nine-month deadline; (3) that Bekins waived the minimum filing requirements by virtue of Whitten's statement; and, (4) that their claim is in fact "determinable," under 49 C.F.R. § 1005.2, because Bekins partially determined, and paid, some of their claim.

III.

Other courts have addressed whether strict compliance with the applicable filing regulations is required. With one exception, ² the answers uniformly have been affirmative. See Nedlloyd Lines B.V. Corp. v. Harris Transp. Co., 922 F.2d 905, 908-909 (1st Cir.1991); Pathway Bellows, Inc. v. Blanchette, 630 F.2d 900, 904-905 (2nd Cir.1980), cert. denied, 450 U.S. 915, 101 S.Ct. 1357, 67 L.Ed.2d 340 (1981); Insurance Co. of N. Am. v. G.I. Trucking Co., 783 F.Supp. 1251, 1253 (N.D.Cal.1991); Hartog Trading Corp. v. M/V PRESIDENTE IBANEZ, No. 90-2713, 1991 WL 33605, at (E.D.La. Mar. 6, 1991).

With respect to whether or not a claim requests a "specified or determinable amount of money," it has likewise been consistently held that, "If damages are sought it is for the claimant to say exactly what it seeks, rather than for the carrier, against its self-interest, to say what the claimant deserves." R.T.A. Corp. v. Consolidated Rail Corp., 594 F.Supp. 205, 210 (S.D.N.Y.1984); accord Nedlloyd Lines, 922 F.2d at 908; G.I. Trucking Co., 783 F.Supp. at 1255-56; Bobst Div. of Bobst Champlain, Inc. v. IML-Freight, Inc., 566 F.Supp. 665, 669 (S.D.N.Y.1983). ³

A. Determinable Claim

Citing Bobst Div. of Bobst Champlain, Inc. v. IML-Freight, supra, the Appellants contend that their claim was "determinable." The Bobst Div. court held that determinable "means an amount determinable, as a matter of mathematics, from a perusal of the documents submitted in support of the notice of claim." 566 F.Supp. at 669. The court then concluded that the shipper's letter, which estimated damage at approximately $100,000, was insufficient to state a determinable claim under 49 C.F.R. § 1005.2. Bobst Div., 566 F.Supp. at 669; see also G.I. Trucking Co., 783 F.Supp. at 1257 (claim for "$100,000 (estimate)" held not sufficiently specific under regulations).

Unlike the claimant in Bobst Div., the Appellants did not tender an estimate of the amount of their claim within the specified time limit. Neither the Bekins's claims forms nor the supplemental handwritten lists indicated what amounts the Appellants were claiming for the damaged items. ⁴ We believe it would frustrate the regulatory purpose of encouraging voluntary settlement to permit an inadequate claim to toll the nine-month time limit on filing proper notice of loss. ⁵ See Nedlloyd Lines, 922 F.2d at 908; Pathway Bellows, Inc. v. Blanchette, 630 F.2d 900, 904 (2nd Cir.1980), cert. denied, 450 U.S. 915, 101 S.Ct. 1357, 67 L.Ed.2d 340 (1981).

B. Waiver and Estoppel

The Appellants argue that Bekins waived the minimum filing requirements by Whitten's statement that the claim forms did not have to be completely filled in. Alternatively, the Appellants rely on this statement, and on the fact that Bekins continued to process their claim past the nine-month mark, to argue that Bekins is estopped from asserting the minimum filing requirements as a defense. This reasoning is drawn from case law creating an exception to the filing requirements when (1) the shipper, despite reasonable diligence, is unable to ascertain the extent of its loss within the filing period; or, (2) the carrier's conduct misled the shipper into believing that a timely filing was unnecessary. See Nedlloyd Lines, 922 F.2d at 909; Pathway Bellows, Inc., 630 F.2d at 905 n. 10; Perini-North River Assocs. v. Chesapeake & O. Ry. Co., 562 F.2d 269, 272-74 (3rd Cir.1977).

"Although waiver and estoppel are sometimes used interchangeably, ... there is a subtle but significant legal distinction between the two." Pitts v. American Sec. Life Ins. Co., 931 F.2d 351, 357 (5th Cir.1991). Waiver involves the voluntary or intentional surrender of a known right. Id. Estoppel, on the other hand, arises when one party has reasonably relied on the conduct or statements of another; if the relying party suffers harm as a result of this reliance, the inducing party can be estopped from disavowing his earlier conduct or statement. See Bennett v. Allstate Ins. Co., 950 F.2d 1102, 1107-08 (5th Cir.1992); Pitts, 931 F.2d at 357; cf. Simpson v. MBank Dallas, N.A., 724 S.W.2d 102, 107 (Tex.Civ.App.--Dallas 1987, writ ref'd n.r.e.) (party claiming estoppel must have used due diligence to ascertain veracity of matter upon which he relies, and reliance must be reasonable).

We determine that neither waiver nor estoppel are appropriate given the facts of this case. In their motion to reconsider filed with the district court, the Appellants attached two letters from Bekins's Claim Services which negate both waiver and estoppel. The first is addressed to Richard Salzstein, dated May 7, 1986, and states:

In order for us to conclude your claim, we are enclosing a copy of your claim form which we are requesting that you fill out completely. Could you please state the approximate replacement cost of the items you are claiming on your claim form. Upon receipt, we can properly conclude your claim.

R. vol. IX, at 72. The second dispatch, dated May 23, 1986, ⁶ is even more to the point Our tariff states that a claim must be filed for a specific and determinable amount. Since your presentation of loss and damage does not fulfill this requirement, it is necessary that we request this information from you. Please forward the amounts claimed, purchase dates and costs as soon as possible. A self-addressed envelope is enclosed for your convenience in replying.

Id. at 74.

Regardless of whether or not the Salzsteins' original reliance on the adjuster's statements was reasonable, we conclude that these letters made continued reliance unreasonable. The Appellants were put on notice that their claim was incomplete. Consequently, the Appellants cannot now estop Bekins from asserting the minimum filing requirements as a defense to their claim. See B...