Court: Landstar Inway Liable for Damage in Mexico
A federal appeals court in Illinois ruled Landstar Inway is liable for freight damage that occurred in Mexico during a 1997 haul, even though the carrier’s contract contained tariff language stating it was not responsible for losses over the border.
Some courts have ruled that shippers are obligated to check a carrier’s tariffs when they are inserted by reference into a bill of lading. Other decisions, such as the Landstar case, have gone the opposite way.
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The May 2 decision is yet another ruling in the long-running legal debate over cargo liability and whether tariffs are in effect if not specifically brought to a shipper’s attention. Lawyers said the cases would only continue to increase as lawsuits brought after the Interstate Commerce Commission was abolished reach higher levels in the court system.
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The disparity leaves the entire matter in a legal morass that some say may ultimately have to be resolved by the U.S. Supreme Court.
