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Union Pacific Railroad Company v. Greentree Transportation Trucking Co. Dave Saunders Trucking, Greentree Transportation Trucking Company

Citations: 293 F.3d 120; 2002 U.S. App. LEXIS 11372; 2002 WL 1283393Docket: 00-3326

Court: Court of Appeals for the Third Circuit; May 16, 2002; Federal Appellate Court

Narrative Opinion Summary

In the case of Union Pacific Railroad Company v. Greentree Transportation Trucking Co., the court addressed the applicability of the Carmack Amendment in relation to a shipment of cigarettes lost due to theft following a train derailment. The primary legal issue was whether Union Pacific, as the successor to Southern Pacific, could hold Greentree liable for the stolen goods under the Carmack Amendment, despite Greentree's claim that Union Pacific lacked standing as an intermediate carrier. Union Pacific sought reimbursement for the loss from Greentree, which had contracted to transport the goods post-derailment. The District Court granted summary judgment in favor of Union Pacific, asserting there were no genuine issues of material fact regarding Greentree's contractual liability. On appeal, Greentree challenged the summary judgment, arguing issues related to the authority to leave the trailer unattended and the applicability of the original bill of lading. However, the appellate court affirmed the District Court's decision, emphasizing the separate contract between Union Pacific and Greentree and the lack of new evidence or legal theories permissible on appeal. The ruling reinforced the principle that carriers are liable for lost goods unless they can prove an exempted cause under the Carmack Amendment. The procedural aspects also highlighted the necessity for timely jurisdictional and contractual arguments in lower courts to preserve them for appeal.

Legal Issues Addressed

Application of the Carmack Amendment

Application: The court determined that the Carmack Amendment allowed Union Pacific to hold Greentree liable for the loss of goods during transport, despite Greentree's claim that Union Pacific lacked standing.

Reasoning: The Supreme Court has established that the Carmack Amendment aims to ease the burden on shippers by allowing them to hold either the initiating or delivering carrier liable for damages.

Authority and Liability of Carriers

Application: Greentree's assertion that its representative lacked authority to leave the trailer unattended did not create a genuine issue of material fact, as the court determined the contract authorized such actions.

Reasoning: Union Pacific acknowledges Greentree’s authorization to leave the trailer unattended but asserts that it was not authorized to leave it unsecured.

Effect of a Through Bill of Lading

Application: The court found that the classification of the Atlanta-to-Tokyo bill of lading as a through bill did not affect Union Pacific's right to recover from Greentree under the separate contract.

Reasoning: Greentree contends that whether the Atlanta-to-Tokyo bill of lading is classified as a through bill of lading creates a genuine issue of material fact.

Jurisdictional Arguments on Appeal

Application: Greentree's jurisdictional argument regarding the District Court's authority was not considered on appeal because it was not raised prior to the summary judgment decision.

Reasoning: Greentree argued that this matter pertains to the District Court's subject matter jurisdiction; however, Union Pacific pointed out that Greentree did not raise this jurisdictional argument prior to the District Court's summary judgment decision, making it unsuitable for appeal.

Summary Judgment Standard

Application: The District Court granted summary judgment in favor of Union Pacific, finding no genuine issue of material fact regarding Greentree's liability under the Carmack Amendment.

Reasoning: The standard of review is de novo, with summary judgment appropriate when no genuine issue exists regarding material facts (Fed. R. Civ. Pro. 56(c)).