FEDERAL EXPRESS SUCCESSFULLY ENFORCES CONTRACTUAL LIABILITY LIMITATION AGAINST SHIPPER’S CLAIM

December 12, 2016

On October 4, 2016, the U.S. District Court for the Eastern District of Michigan’s Southern Division found in favor of defendant Federal Express and granted a motion for partial summary judgment regarding the alleged loss of two shipments of precious metals and gems.  The case involved a lawsuit by Golden Hawk Metallurgical, Inc., a shipper of precious metals and gems, alleging that FedEx failed to deliver the shipments at issue, and that a FedEx employee likely stole the goods, replacing them with rocks from one of the shipping locations. Golden Hawk had asserted three claims: 1) breach of contract; 2) breach of duty as a bailee; and 3) conversion.  The terms and conditions of the parties’ contracts appear on the applicable airbills, and expressly limited FedEx’s liability to $100 “unless a higher value was declared and paid for”. Golden Hawk neither declared nor paid for a value higher than $100 for either shipment. In finding for Federal Express, the Court dismissed the conversion and breach of duty as bailee claims, and declared that the claim for breach of contract was limited to $100.

See: 

https://law.justia.com/cases/federal/district-courts/michigan/miedce/2:2015cv14005/306095/14/

 

If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).

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