Watkins Motor Lines v. UNDERWRITERS AT INT., 3D04-988.

• Decision Date: 12 January 2005
• Docket Number: No. 3D04-988.,3D04-988.
• Parties: WATKINS MOTOR LINES, INC., Appellant/Cross-Appellee, v. UNDERWRITERS AT INTEREST, AT LLOYDS a/s/o Tech Data., Appellee/Cross-Appellant.
• Court: Florida District Court of Appeals

892 So.2d 1143

WATKINS MOTOR LINES, INC., Appellant/Cross-Appellee, v. UNDERWRITERS AT INTEREST, AT LLOYDS a/s/o Tech Data., Appellee/Cross-Appellant.

No. 3D04-988.

District Court of Appeal of Florida, Third District.

January 12, 2005.

Rehearing Denied March 2, 2005.

Lawrence J. Roberts, Coral Gables, for appellant/cross-appellee.

Mitchell L. Shadowitz, Boca Raton, for appellee/cross-appellant.

Before GREEN, FLETCHER, and RAMIREZ, JJ.

RAMIREZ, J.

Watkins Motor Lines, Inc. appeals the entry of a final judgment entered in favor of Underwriters at Interest, at Lloyds for the loss of a shipment of computer equipment that belonged to Tech Data, Lloyds' insured. Lloyds cross-appeals the court's determination of pre-judgment interest. We affirm the entry of judgment in Lloyds' favor, but reverse the court's determination of pre-judgment interest.

In 1999, Watkins entered into a contract with Tech Data in which Watkins agreed to transport a series of shipments for Watkins. The parties dispute the applicability of two contractual provisions (1) Watkins' liability was limited under Paragraph 9 of the contract to $25.00 per pound, subject to a maximum of $100,000 per shipment, for loss or damage claims involving a shipment, "except in the event of loss or damage to goods occurring in circumstances in which there was a failure to comply with any of the security requirements of Schedule D, Part I" of the contract.

(2) If Watkins failed to comply with the security requirements of Schedule D, Part I, then paragraph 9 of the contract entitled Tech Data "to recover from [Watkins], as liquidated damages and not as a penalty, a sum equal to 110% of the invoice value of the affected goods ..."

The contract also contained two provisions concerning security which are also relevant to our analysis. Pursuant to paragraph 6 of the contract, Watkins agreed to provide "the minimum levels of security set forth in Schedule D, Part I." Paragraph G of Schedule D provided that "loaded trailers shall be secured with a high-security padlock at all times other than during actual loading/unloading."

While the contract was in effect, Tech Data tendered and Watkins received a shipment that contained 72 cartons of computer equipment for transportation. The entire shipment was lost in July 1999. On December 6, 1999, Lloyds demanded that Watkins pay for the loss at the rate of $25.00 per pound or $38,175.00. Lloyds also sought evidence of Watkins' compliance with the security requirements contained in Schedule D. Watkins subsequently issued payment in the amount of $38,462.59 on February 14, 2000, but did not provide evidence of compliance with Schedule D. Lloyds rejected Watkins' payment and demanded payment of 110% of the invoice value of the missing shipment or $69,960.00. Watkins refused to pay.

Lloyds, as subrogee of Tech Data, sued Watkins seeking damages in the amount of 110% of the invoice value of the missing shipment or $69,960.00. We agree with the trial court's subsequent entry of summary judgment in Lloyds' favor as to liability and its entry of final judgment in Lloyds' favor in the net amount of $31,785.00, which reflects an...