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Carmack Amendment Preemption Applies to Post-Delivery Claims Process
HOAF is proud to announce a recent victory reinforcing the preemptive scope of the Carmack Amendment.
On July 22, 2024, the Western District of Oklahoma ruled that the Carmack Amendment completely preempts state law claims based on representations made during the post-delivery, claims-handling process. Specifically, the Court held that claims stemming from alleged misconduct of motor carrier representatives after final delivery of household goods is included in the broad preemptive scope of the Carmack Amendment.
In a case entitled: Kent Garner v. Atlas Van Lines, Inc. et al., our client faced state law claims for deceit, constructive fraud, and promissory estoppel related to the processing and handling of a shipper’s claims after delivery of the shipper’s household goods. The shipper sought to circumvent preemption of state law claims under the Carmack Amendment. Our clients argued that the shipper’s claims were indeed preempted by the Carmack Amendment, which provides the exclusive remedy for shippers and carriers engaged in interstate commerce.
The Court agreed, ruling that the Carmack Amendment preempts state law claims related to the post-delivery, claims-handling process. The Court reasoned that where “state law claims are directly connected to, based on, or predicated upon, the damage to the shipped goods,” such claims are preempted by the Carmack Amendment. Gardner v. Ace Moving & Storage, LLC, No. CIV-22-639-SLP, 2024 WL 3593808, at *6 (W.D. Okla. July 22, 2024). The Court concluded that the shipper’s “state law claims were all based on conduct during the claims process that centered entirely on damage to household goods, and such claims would not exist but for that damage.” Id. Accordingly, the Court dismissed the claims with prejudice. Id.
This decision aligns with the fundamental purpose of the Carmack Amendment: to create a uniform national framework governing the liability of carriers for the loss, damage, or delay of goods. By preempting claims based on representations during the claims process, the Carmack Amendment ensures that carriers and shippers operate under a consistent set of rules, thereby facilitating smoother and more predictable commercial transactions. This ruling will provide clarity and certainty for carriers and shippers alike. By upholding the preemptive scope of the Carmack Amendment, Western District of Oklahoma has reinforced the legal protections that underpin the efficient and reliable movement of goods across state lines. This victory adds to our firm’s history of securing favorable rulings for the transportation industry across numerous states, including Alabama, Colorado, Florida, Georgia, Kentucky, Michigan, Mississippi, New Mexico, New York, Texas, Virginia, and Wyoming. HOAF remains at the forefront of this critical area of law, and will continue to advocate for the interests of the transportation industry.
- Davinder Jassal is an Associate Attorney with Henry Oddo Austin & Fletcher, P.C., specializing in Transportation Law and Personal Injury Defense. This article is made available by the attorney and/or law firm publisher for educational purposes only as well as to give you general information and a general understanding of the law; it is not being made available to provide specific legal advice. By using this website and/or article, you understand that there is no attorney-client relationship between you and the law firm publisher or attorney author. This website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
Aug 12, 2024
