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7th Circuit reinstates insurer’s case against shipper

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An insurer’s lawsuit against an Indianapolis-based shipping company involving a loss of more than $1 million has been reinstated by the 7th Circuit Court of Appeals.

Judge Diane Wood wrote in a unanimous opinion that the U.S. District Court for the Southern District of Indiana prematurely granted summary judgment for the defendant in Nipponkoa Insurance Company Ltd. v. Atlas Van Lines, 11-3085.

Nipponkoa insured Toshiba American Medical System, which in 2008 contracted with Comtrans, Ltd., and an Affiliate, Alternative Carrier Source, Inc., which hired Atlas to ship a device from California to a trade show in Chicago. A serious accident left TAMS with more than $1 million in losses.   

Atlas claims it had a contract with ACS and presented a bill of lading to Comtrans, each of which limited Atlas’ liability to 60 cents per pound. Atlas claims the Carmack Amendment 49 U.S.C. § 14706 limits its liability, but Nipponkoa contends neither the ACS contract or the bill of lading applied to TAMS and that if they did, they are not  Carmack-compliant.

“As is true in many contract cases that wind up in litigation, the fundamental question is who must ultimately bear the loss when multiple actors play a role in an arrangement,” Wood wrote. “While we appreciate the efforts made by both the parties and the district court to sort this out, we conclude that further proceedings are necessary. A final answer must await further development of the details of the shipping contract and the nature of the relationship among the four companies. Summary judgment was therefore inappropriate.”

The district court initially denied Atlas’ request for summary judgment, the 7th Circuit notes, but granted it after Atlas filed a motion to reconsider.

The order says further development of the relationship among players in the case is necessary, as is determining whether TAMS, which suffered the loss, is bound by Atlas’ contracts or a bill of lading signed by the intermediaries.






 

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  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

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