Supreme Court to Hear Cargo Case

The U.S. Supreme Court on Tuesday agreed to hear a case that should clarify what laws apply when international shipments are damaged in transit within the United States.

The case involves the Union Pacific Railroad, Kawasaki Kisen Kaisha (K-Line) and its subsidiaries, and Regal-Beloit Corp., a manufacturer of electric motors and components based in Beloit, Wis.

The case began with a 2005 shipment from China that was damaged in a derailment in Oklahoma.

The high court for the first time is expected to say if liability is governed by the Carriage of Goods by Sea Act or the Carmack Amendment to the Interstate Commerce Act, according to attorney Chester D. Hooper.

In a 2005 case, the Supreme Court ruled that the Norfolk Southern Railway’s liability was covered by COGSA for damage to machinery shipped from Australia in a derailment in Alabama.

However, Hooper said the court was not asked to determine how the Carmack Amendment applied. The amendment applies to carriage of goods within U.S. borders, or from adjacent foreign countries.

The Supreme Court has not set a date for oral arguments.

Contact R.G. Edmonson at bedmonson@joc.com.