Shippers frequently file lawsuits against motor carriers for goods damaged during shipment in interstate commerce under various legal theories, including breach of contract, misrepresentation and negligence. Courts almost always dismiss actions based upon these theories where the shipment is in interstate commerce.

    The Carmack Amendment represents the shipper's exclusive remedy against a motor carrier for goods damaged during shipment in interstate commerce. State law claims filed using the above legal theories are preempted by the Carmack Amendment, which provides that a motor carrier is liable "for the actual loss or injury to the property" incurred during transportation.

    Prior to the passage of the Interstate Commerce Commission Termination Act (ICCTA), the Carmack Amendment addressed only the liability of common carriers. Subsequently, the ICCTA removed the word "common" as a limitation on "carrier". Under the revised statute, there is no distinction between a contract or a common carrier; a "carrier" is "a person providing motor vehicle transportation for hire." The Carmack Amendment now applies regardless of whether the carrier is a contract or a common carrier.

    A number of courts have determined that a broker is not liable under the Carmack Amendment since liability under the Carmack Amendment only applies to motor carriers. The converse, however, is that a broker is not protected from state law claims by the Carmack Amendment. Courts have found that a broker, unlike a motor carrier, may be liable under state law claims filed for breach of contract, misrepresentation and negligence if the facts of the case support those claims.

    This article is not meant to provide legal advice or offer solutions to individual problems. Questions about individual problems should be addressed to the author. William A. Gray, Esq.
    Law Firm of Vuono & Gray, LLC
    2310 Grant Building, Pittsburgh, PA 15219
    (412) 471-1800