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Newsletter articles from 2003
3rd Circuit affirms damage award for late delivery of dated materials
The U.S. Court of Appeals for the 3rd Circuit has awarded a shipper the entire invoice value of Christmas-related paper goods that a motor carrier had lost and failed to deliver until the end of the following March in Paper Magic Group v. J.B. Hunt Transport, Inc., 2003 WL 135787 (3d Cir. 1/16/03)
Cargo damage judgment affirmed as to liability, but reversed as to damages
The Illinois Appellate Court for the Second District has affirmed in part and reversed in part a summary judgment awarded to an insurer against a motor carrier in a subrogation suit arising out of a cargo damage claim to an electron microscope in Wausau Ins. Co. v. All Chicagoland Moving And Storage Company, Case No. 02-01-1317 (decided September 27, 2002).
Conversion claim preempted by Carmack
In Chen v. Mayflower Transit, Inc., 2002 Fed. Carr Cases &84,251 (7/19/02), the U.S. District Court for the Northern District of Illinois confronted several state law claims which arose on a household goods move from Atlanta to Chicago.
District court applies state law to resolve stolen international shipment issue
In Indemnity Insurance Co. of North America v. Hanjin Shipping Co., 2002 Fed. Car. Cases &84, 249 (Sept. 2002), the U.S. District Court for the Northern District of Illinois wrestled with the complicated issues of what law to apply in a dispute about the failed delivery of a Black & Decker power tool shipment from Shenzhen, China to Lowe's Company in North Vernon, IN.
District court rules for broker on cargo claim
In Chubb Group v. H.A. Transp. Systems, Inc., Case No. VC 01-9192 AHM (MEX) (10/9/02), the U.S. District Court for the Central District of California granted summary judgment to defendant transportation broker H.A.
Illinois Department of Insurance “opt out” ruling a clarification for Illinois motor carriers
The Illinois Appellate Court for the 1st District clobbered the Illinois trucking industry in 1997 when it ruled that workers' compensation insurers could collect premiums from motor carriers based on revenues the motor carriers paid to independent contractor owner-operators who were ineligible for workers' compensation benefits under Illinois law in Wausau Insurance Co. v. Kim's Trucking, Inc., 289 Ill. App. 3d 201, 682 N.E. 2d 190 (1st Dist. 1997) appl. denied 175 Ill. 2d 555 (1997)
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Seventh Circuit addresses COGSA, the Hague Rules and Illinois bailment law in non-Carmack cargo litigation
In Indemnity Insurance Company of North America, as subrogee of Lowe's Companies, Inc., v. Hanjin Shipping Company, O'Hare Services, and Channel Distribution, Case Nos. 02-2822 and 02-2933 (7th Cir. 10/31/03), the U.S. Court of Appeals for the 7th Circuit has held that plaintiff Indemnity Insurance Company of North America ("Indemnity") could not recover damages from defendant Hanjin Shipping Company ("Hanjin") on an international shipment that moved under Hanjin's waybill.
Seventh Circuit sets standards for measuring Carmack damages
The U.S. Court of Appeals for the Seventh Circuit has addressed important liability and damage issues arising out of litigation brought against motor carriers under the Carmack Amendment, 49 U.S.C. §14706. In American Nat'l Fire Insurance Co. as subrogee of Tabacalera Contreras Cigar Co. v. Yellow Freight Systems, Inc., Case Nos. 02-1639 and 02-1741 (7th Cir. 1/10/03), the court held that the plaintiff subrogee American Nat'l Fire Insurance Co. (National Insurance) had established its case against the defendant motor carrier Yellow and was entitled to recover damages for freight, taxes, fees, and insurance on the damaged portion of the shipment at issue.