Appeals Court Denies Request to Revisit Insurance Ruling

federal appeals court last week denied a request to rehear its recent decision that the federal government can require only common carriers — not contract carriers — to obtain cargo liability insurance, often referred to as BMC-32 coverage after the relevant endorsement form.

The appeals court had overturned a U.S. District Court decision favoring a shipper’s loss-and-damage claims and sent the case back to the lower court, but an attorney for the shipper said he eventually would appeal to the U.S. Supreme Court.

Attorney Raymond Selvaggio, representing the shipper, told Transport Topics last week he had asked for a rehearing by the full court of appeals on the basis that the appellate court had “misunderstood the meaning of a provision contained within the Interstate Commerce Commission Termination Act authorizing the Federal Motor Carrier Safety Administration to issue regulations relating to cargo insurance for motor carriers.”