49 U.S.C. § 14706 : US Code - Section 14706: Liability of carriers under receipts and bills of lading

Search 49 U.S.C. § 14706 : US Code - Section 14706: Liability of carriers under receipts and bills of lading

(a) General Liability. -
(1) Motor carriers and freight forwarders. - A carrier
providing transportation or service subject to jurisdiction under
subchapter I or III of chapter 135 shall issue a receipt or bill
of lading for property it receives for transportation under this
part. That carrier and any other carrier that delivers the
property and is providing transportation or service subject to
jurisdiction under subchapter I or III of chapter 135 or chapter
105 are liable to the person entitled to recover under the
receipt or bill of lading. The liability imposed under this
paragraph is for the actual loss or injury to the property caused
by (A) the receiving carrier, (B) the delivering carrier, or (C)
another carrier over whose line or route the property is
transported in the United States or from a place in the United
States to a place in an adjacent foreign country when transported
under a through bill of lading and, except in the case of a
freight forwarder, applies to property reconsigned or diverted
under a tariff under section 13702. Failure to issue a receipt or
bill of lading does not affect the liability of a carrier. A
delivering carrier is deemed to be the carrier performing the
line-haul transportation nearest the destination but does not
include a carrier providing only a switching service at the
destination.
(2) Freight forwarder. - A freight forwarder is both the
receiving and delivering carrier. When a freight forwarder
provides service and uses a motor carrier providing
transportation subject to jurisdiction under subchapter I of
chapter 135 to receive property from a consignor, the motor
carrier may execute the bill of lading or shipping receipt for
the freight forwarder with its consent. With the consent of the
freight forwarder, a motor carrier may deliver property for a
freight forwarder on the freight forwarder's bill of lading,
freight bill, or shipping receipt to the consignee named in it,
and receipt for the property may be made on the freight
forwarder's delivery receipt.
(b) Apportionment. - The carrier issuing the receipt or bill of
lading under subsection (a) of this section or delivering the
property for which the receipt or bill of lading was issued is
entitled to recover from the carrier over whose line or route the
loss or injury occurred the amount required to be paid to the
owners of the property, as evidenced by a receipt, judgment, or
transcript, and the amount of its expenses reasonably incurred in
defending a civil action brought by that person.
(c) Special Rules. -
(1) Motor carriers. -
(A) Shipper waiver. - Subject to the provisions of
subparagraph (B), a carrier providing transportation or service
subject to jurisdiction under subchapter I or III of chapter
135 may, subject to the provisions of this chapter (including
with respect to a motor carrier, the requirements of section
13710(a)), establish rates for the transportation of property
(other than household goods described in section 13102(10)(A))
under which the liability of the carrier for such property is
limited to a value established by written or electronic
declaration of the shipper or by written agreement between the
carrier and shipper if that value would be reasonable under the
circumstances surrounding the transportation.
(B) Carrier notification. - If the motor carrier is not
required to file its tariff with the Board, it shall provide
under section 13710(a)(1) to the shipper, on request of the
shipper, a written or electronic copy of the rate,
classification, rules, and practices upon which any rate
applicable to a shipment, or agreed to between the shipper and
the carrier, is based. The copy provided by the carrier shall
clearly state the dates of applicability of the rate,
classification, rules, or practices.
(C) Prohibition against collective establishment. - No
discussion, consideration, or approval as to rules to limit
liability under this subsection may be undertaken by carriers
acting under an agreement approved pursuant to section 13703.
(2) Water carriers. - If loss or injury to property occurs
while it is in the custody of a water carrier, the liability of
that carrier is determined by its bill of lading and the law
applicable to water transportation. The liability of the initial
or delivering carrier is the same as the liability of the water
carrier.
(d) Civil Actions. -
(1) Against delivering carrier. - A civil action under this
section may be brought against a delivering carrier in a district
court of the United States or in a State court. Trial, if the
action is brought in a district court of the United States is in
a judicial district, and if in a State court, is in a State
through which the defendant carrier operates.
(2) Against carrier responsible for loss. - A civil action
under this section may be brought against the carrier alleged to
have caused the loss or damage, in the judicial district in which
such loss or damage is alleged to have occurred.
(3) Jurisdiction of courts. - A civil action under this section
may be brought in a United States district court or in a State
court.
(4) Judicial district defined. - In this section, "judicial
district" means -
(A) in the case of a United States district court, a judicial
district of the United States; and
(B) in the case of a State court, the applicable geographic
area over which such court exercises jurisdiction.
(e) Minimum Period for Filing Claims. -
(1) In general. - A carrier may not provide by rule, contract,
or otherwise, a period of less than 9 months for filing a claim
against it under this section and a period of less than 2 years
for bringing a civil action against it under this section. The
period for bringing a civil action is computed from the date the
carrier gives a person written notice that the carrier has
disallowed any part of the claim specified in the notice.
(2) Special rules. - For the purposes of this subsection -
(A) an offer of compromise shall not constitute a
disallowance of any part of the claim unless the carrier, in
writing, informs the claimant that such part of the claim is
disallowed and provides reasons for such disallowance; and
(B) communications received from a carrier's insurer shall
not constitute a disallowance of any part of the claim unless
the insurer, in writing, informs the claimant that such part of
the claim is disallowed, provides reason for such disallowance,
and informs the claimant that the insurer is acting on behalf
of the carrier.
(f) Limiting Liability of Household Goods Carriers to Declared
Value. -
(1) In general. - A carrier or group of carriers subject to
jurisdiction under subchapter I or III of chapter 135 may
petition the Board to modify, eliminate, or establish rates for
the transportation of household goods under which the liability
of the carrier for that property is limited to a value
established by written declaration of the shipper or by a written
agreement.
(2) Full value protection obligation. - Unless the carrier
receives a waiver in writing under paragraph (3), a carrier's
maximum liability for household goods that are lost, damaged,
destroyed, or otherwise not delivered to the final destination is
an amount equal to the replacement value of such goods, subject
to a maximum amount equal to the declared value of the shipment
and to rules issued by the Surface Transportation Board and
applicable tariffs.
(3) Application of rates. - The released rates established by
the Board under paragraph (1) (commonly known as "released
rates") shall not apply to the transportation of household goods
by a carrier unless the liability of the carrier for the full
value of such household goods under paragraph (2) is waived, in
writing, by the shipper.
(g) Modifications and Reforms. -
(1) Study. - The Secretary shall conduct a study to determine
whether any modifications or reforms should be made to the loss
and damage provisions of this section, including those related to
limitation of liability by carriers.
(2) Factors to consider. - In conducting the study, the
Secretary, at a minimum, shall consider -
(A) the efficient delivery of transportation services;
(B) international and intermodal harmony;
(C) the public interest; and
(D) the interest of carriers and shippers.
(3) Report. - Not later than 12 months after January 1, 1996,
the Secretary shall submit to Congress a report on the results of
the study, together with any recommendations of the Secretary
(including legislative recommendations) for implementing
modifications or reforms identified by the Secretary as being
appropriate.