Statute: Liability of Carriers

49 U.S.C.A. § 14706

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Effective: August 10, 2005
United States Code Annotated Currentness
Title 49. Transportation (Refs & Annos)
Subtitle IV. Interstate Transportation (Refs & Annos)
Part B. Motor Carriers, Water Carriers, Brokers, and Freight Forwarders (Refs & Annos)
Chapter 147. Enforcement; Investigations; Rights; Remedies
§ 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.--

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49 U.S.C.A. § 14706

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(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

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(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.

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(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.
CREDIT(S)
(Added Pub.L. 104-88, Title I, § 103, Dec. 29, 1995, 109 Stat. 907; amended Pub.L. 104-287, § 5(38), Oct. 11,
1996, 110 Stat. 3392; Pub.L. 109-59, Title IV, § 4207, Aug. 10, 2005, 119 Stat. 1757.)
Current through P.L. 112-209 approved 12-18-12
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