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Shielding International, Inc. v. Oak Harbor Freight Lines, Inc.

Citation: 305 F. App'x 432Docket: No. 06-35798

Court: Court of Appeals for the Ninth Circuit; December 28, 2008; Federal Appellate Court

Narrative Opinion Summary

This case involves an appeal by Oak Harbor Freight Lines, Inc. against a district court decision which granted summary judgment to Shielding International, Inc. The primary legal issue revolves around Oak Harbor's liability under the Carmack Amendment for damage to a shipment valued at $46,042. Oak Harbor conceded damage responsibility but attempted to limit its liability to $4,782 under a specific tariff rate. The court found that Oak Harbor failed to comply with the Carmack Amendment's requirement to offer shippers a choice of liability rates. Oak Harbor's claim of an unpublicized procedure allowing for a higher liability limit was deemed insufficient. The court affirmed that neither the Trucking Industry Regulatory Reform Act of 1994 nor the ICC Termination Act of 1995 modified this requirement. The district court's judgment was affirmed, holding Oak Harbor liable for the actual damages incurred by Shielding. The decision is not deemed suitable for publication as precedent, except under specific conditions within the 9th Circuit rules, aligning with similar rulings in other circuits.

Legal Issues Addressed

Carrier Liability under the Carmack Amendment

Application: The court held that Oak Harbor Freight Lines, Inc. was liable for the full amount of damages because it failed to offer Shielding International, Inc. a choice of liability rates as required under the Carmack Amendment.

Reasoning: The Carmack Amendment mandates that carriers must offer shippers a choice of liability rates before limiting liability.

Interpretation of the Trucking Industry Regulatory Reform Act of 1994 and ICC Termination Act of 1995

Application: The court determined that these acts did not alter the existing requirement for carriers to provide a choice of rates to shippers.

Reasoning: The ruling clarified that neither the Trucking Industry Regulatory Reform Act of 1994 nor the ICC Termination Act of 1995 altered the requirement that carriers must provide shippers with a choice of rates.

Limitation of Liability and Disclosure Requirements

Application: Oak Harbor attempted to limit its liability based on a tariff rate, but the court found their documentation did not properly disclose a choice of liability rates to the shipper.

Reasoning: However, the court found that Oak Harbor’s tariff, bills of lading, and pricing agreements did not disclose this choice.