In a clear win for freight brokers, and a case of first impression, Peyton Inge recently obtained a Summary Judgment ruling in Federal Court that determined that brokers are not limited by Carmack for damage occurring to goods during interstate transport. Prior to trial, carriers have occasionally argued that Carmack limits a right to sue the carrier in state court for damage to cargo which occurred while in the carrier’s control. Those same carriers have argued that because Carmack limits the broker’s ability to obtain attorneys’ fees incurred in the pursuit of a legitimate cargo claim so as force the broker to accept a reduced settlement value for the cargo claim. The Northern District of Texas properly analyzed the law and determined that a broker injured by a carrier’s refusal to pay a freight damage claim may successfully assert a breach of contact claim against the carrier.
Attorney: H. Peyton Inge, IV