JAMES LAWRENCE KING, District Judge.
On April 10, 2007, MA Laboratories Inc. ("MA Labs") and BE Logistics entered into an agreement in which BE Logistics agreed to accept and deliver shipments from California to MA Labs' Miami destination. The contract between MA Labs and BE Logistics details the usual procedures followed by BE Logistics, when executing cross-country shipments. As part of its procedures, BE Logistics utilizes teams of two drivers, instructioned not to leave any doors unlocked or equipment unattended. The service agreement includes three options for MA Labs to elect insurance coverage in case of damage to the shipped goods. The three options for coverage are: (1) up to $.50 per pound or $50 maximum per bill of lading included in the shipping price; (2) coverage for express declared value on the bill of lading above $50 and below $100,000 available at an additional $.50 per $100 of value, this option shall not exceed $25.00 of coverage per pound; and (3) coverage for express value over the $100,000 or $25.00 per pound limit requires a separate written statement between the parties. The parties had conducted business under this agreement for about two years.
On February 5, 2009, Plaintiff alleges that a shipment of computer equipment weighing 29,000 lbs. was delivered to BE Logistics for shipment from California to MA Labs' facility in Miami. Plaintiff, Certain Underwriters at Lloyd's of London insured the shipment. BE Logistics issued a bill of lading, which was signed by MA Labs. The bill of lading included language about BE Logistics' limitation of liability policy. In the space for "declared value" $10,000 was declared as the value. At some point during the shipping process, BE Logistics transferred the shipment to its sub-contractor, Defendant, CTS. The cargo was left unattended in an unlocked vehicle and, the shipment was lost. The above-styled action was filed on February 9, 2010 to reclaim the full value of the shipment, $1, 111, 864.90.
"For the purposes of a motion to dismiss, the Court must view the allegations of the complaint in the light most favorable to Plaintiff, consider the allegations of the complaint as true, and accept all reasonable inferences therefrom." Omar ex rel. Cannon v. Lindsey, 334 F.3d 1246, 1247 (11th Cir.2003). Dismissal of the complaint is appropriate if the plaintiff has not "nudged [its] claims across the line from conceivable to plausible." Bell Atl. Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955,
The Carmack Amendment to the Interstate Commerce Act, 49 U.S.C. § 14706, establishes a national liability policy for interstate carriers, and preempts all state and federal common law claims. Adams Express Co. v. Croninger, 226 U.S. 491, 505, 33 S.Ct. 148, 57 L.Ed. 314 (1913); Hughes Aircraft v. North American Van Lines, 970 F.2d 609, 613 (9th Cir.1992). Furthermore, "the district courts shall have original jurisdiction of an action brought under ... 14706 of title 49, only if the matter in controversy for each receipt or bill of lading exceeds $10,000, exclusive of interests and costs." 28 U.S.C. § 1337(a).
As a general rule, when a motor carrier loses or injures the property in its care the carrier is liable for "the actual loss or injury to the property." 49 U.S.C. § 14706(a)(1); see Siren, Inc. v. Estes Express Lines, 249 F.3d 1268, 1270 (11th Cir.2001). However, 49 U.S.C. § 14706(c)(1)(A) provides an exception to this general rule, which allows the carrier to limit its liability by written declaration if "that [limited] value would be reasonable under the circumstances surrounding the transportation." There are four steps a carrier must take to effectively limit its liability under the Carmack Amendment: (1) maintain a tariff within the prescribed guidelines of the Interstate Commerce Commission; (2) obtain the shipper's agreement as to his choice of liability; (3) give the shipper a reasonable opportunity to choose between two or more levels of liability; and (4) issue a receipt or bill of lading prior to moving the shipment. Bio-Lab, Inc. v. Pony Express Courier Corp., 911 F.2d 1580, 1582 (11th Cir.1990) (citing Hughes v. United Van Lines, Inc., 829 F.2d 1407, 1415 (7th Cir.1987)). Once a valid limitation of liability is in place, federal courts have generally refused to find that limitation invalid because of negligent acts on behalf of the carrier. Deiro v. American Airlines, Inc., 816 F.2d 1360 (9th Cir.1987); Rocky Ford Moving Vans, Inc. v. United States, 501 F.2d 1369 (8th Cir.1974).
Plaintiff offers two arguments objecting to BE Logistics' limitation of liability clause: (1) that the bill of lading's terms are ambiguous and therefore inapplicable; and (2) that the Defendants materially deviated from the terms of the service agreement. Plaintiff does not allege that BE Logistics' liability limitation clause is deficient or unreasonable under the Carmack Amendment. Neither of Plaintiffs objections apply to this bill of lading in bar of BE Logistic' reliance on the limitation exception. The Court finds that BE Logistics' liability was limited to $10,000 declared value on the face of the bill of lading.
Plaintiff argues that the bill of lading is ambiguous because it is unclear
At the time the bill of lading was executed, MA Labs and BE Logistics had been shipping cargo with BE Logistics continuously for two years. Though Plaintiffs allege that the "DECLARED VAUE" may be interpreted as referring to the declared value per loose piece, this interpretation is inconsistent with the terms of the contract because such an interpretation would produce a total liability coverage of $290,000, and a separate written agreement is required by the contract for all shipments valued over $100,000. Alternately, Plaintiff contends that a possible interpretation of the liability limitation clause would produce coverage of $14,500, because that value corresponds to $.50 per pound liability coverage. However, the terms of the contract and the bill of lading are clear that the $.50 per pound level of coverage is cut off at $50 of total coverage. MA Labs filled out the bill of lading, and signed directly under the release of liability clause which provides that "all applicable fees have been paid." If MA Labs had a question about which level of liability coverage they were purchasing, the time to raise such a question was before signing the bill of lading. Therefore, the Court rejects Plaintiff's argument of ambiguity in the terms of the bill of lading.
The "material deviation" doctrine originates in admiralty law, and has previously been applied to over land and airborne shipping in certain circumstances. Praxair Inc. v. Mayflower Transit. Inc., 919 F.Supp. 650, 654 (S.D.N.Y.1996).
Praxair, 919 F.Supp. at 656; see also Hill Constr. Corp. v. Am. Airlines, Inc., 996 F.2d 1315,1319 (1st Cir.1993) (holding the doctrine is limited to contracts where a "separate, risk-related promise (special to the particular shipment at issue)" exists). Cases that apply the "material deviation"
In Mingtai Fire and Marine Insurance, Co., Ltd., et al. v. Expeditors International of Washington, Inc., et al., No. 08-21801-CIVJordan (S.D.Fla. August 18, 2009), Judge Jordan did not apply the "material deviation" doctrine because he found there was no "separate, risk related promise." Judge Jordan noted that plaintiffs did not furnish any evidence that "special, shipment-specific, terms had ever been negotiated or discussed." Id. at *5. Moreover, he held that literature describing the defendant's security procedures did not prove that any "special precautions particular to the transport of laptop computers or this shipment was ever discussed, contemplated, or bargained for," but simply promoted the company's general security protocols to the plaintiff. Id. at *6.
In the instant case, the "material deviation" doctrine does not apply because there is no evidence of a "separate, riskrelated promise." Plaintiff suggests that the third paragraph of the service agreement dealing with security measures is such a promise. However, a close examination of that language reveals the statements simply outline a description of BE Logistics' general security measures. Phrases that refer to BE Logistics' broad services like "BE Logistics ground service utilizes," and "all cross-country moves," lead to the conclusion that these security measures were not negotiated specifically for the Plaintiff's deliveries, but are BE Logistics' general security protocols. Moreover, Plaintiff does not point to any evidence that special consideration was paid, above BE Logistics' usual shipping rates, for added security measures. As in Rocky Ford, Mingtai, and Nippon Fire, BE Logistics' paragraph detailing the general security measures does not rise to the level of a "separate, risk related promise." The security measures are not specific to the shipment in question and there is no evidence of negotiation or additional consideration paid specifically for the implementation of a "separate, risk-related promise." Therefore, even if the material deviation doctrine applied to this case, Plaintiff has not pled sufficient facts to warrant a circumvention of BE Logistics' valid limitation of liability.
In sum, Plaintiff has failed to adequately plead a sufficient claim for damages under the Carmack Amendment to the Interstate Commerce Act. The Court finds to a degree of legal certainty that the Plaintiff's claims are limited to the $10,000, "DCLARED VALUE" on the bill of lading. The Court, therefore, lacks subject matter jurisdiction because the amount in controversy does not surpass the $10,000 Carmack Amendment threshold. Accordingly, after a careful review of the record and the court being otherwise fully advised it is.