In a case decided earlier this year, the Ninth Circuit Court of Appeals addressed the question of whether a claim that notes the cargo’s total value but makes no mention of the claimed value satisfies the minimum claim-filing requirements of 49. C.F.R §1005.2(b). Upon review, the court held that merely stating the total value of the cargo does not meet the claim-filing requirements. The claim must specify an amount claimed or provide other means for the carrier to access the extent of the loss. The case is New York Marine and General Insurance Company v. Estes Express Lines, Inc., 719 Fed.Appx. 691 (9th Cir. Apr. 17, 2018).
In this case, New York Marine brought an action under the Carmack Amendment to recover $84,511.23 paid to its insured broker for damage to a shipment of batteries owned by the broker’s customer. Prior to filing suit, New York Marine filed a claim that stated that “[e]xtent of damage” is “unknown until cargo is inspected,” and merely noted the cargo’s total value of $148,055.30. Neither Estes nor Zeta was ever told of the results of the subsequent inspection and, despite requests by Zeta for the amount of the claim, no update followed.
The claim filing requirements of 49. C.F.R §1005.2(b) are a prerequisite to filing suit under the Carmack Amendment. One of those claim filing requirements is “making claim for the payment of a specified or determinable amount of money.” On summary judgment, the district court held that the case should be dismissed because the loss claim filed by New York did not indicate “a specified or determinable amount of money” as required by 49. C.F.R §1005.2(b).
The Ninth Circuit Court of Appeals affirmed the district court’s ruling. The court held that in the absence of a “specified or determinable amount” listed on the claim form or any other means for a carrier to assess the extent of the loss, the forms did not reasonably permit Estes to apprise itself of the approximate claim value. Merely identifying the upper bound of possible damages with exact damages stated as “to be determined” is insufficient. Even under the Ninth Circuit’s “substantial performance” standard, New York Marine’s claim fails.
This case serves as a reminder that the claim filing requirements are important and must be carefully followed. Otherwise, a claim that might be valid and recoverable can end up barred from recovery in litigation.
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