Insurer Appeals Dismissal of Subrogation Claim Against Freight Carrier

An insurer of a pharmaceutical company is appealing a New Jersey District Court’s dismissal of its subrogation claim against a freight carrier that was transporting a $9 million pharmaceutical shipment when it was stolen. The District Court identified that the freight carrier and the pharmaceutical company “expressly waived” the Carmack Amendment, the exclusive cause of action for interstate shipping claims over property loss or damage, in its shipping agreement. As a result of this waiver, the District Court found that the insurer was not entitled to maintain claims brought against the freight carrier for the stolen property. While the Third Circuit Court of Appeals has yet to weigh in on the issue, the New Jersey District Court’s decisions illustrates the dramatic impact of a shipper’s waiver of the Carmack Amendment. Sanofi-Aventis U.S., LLC v. Great Am. Lines, Inc., No. CV102023MASTJB, 2016 WL 4472949 (D.N.J. Aug. 22, 2016).

Scott Williams-1 for web

Jun 23, 2017
H. Scott Williams

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