Low, Ball & Lynch’s
WEEKLY LAW RESUME
June
16, 2005 Issue By: Ray Coates
Torts - Attorney Fees - Property
Damage Claim
(June 7, 2026)
The Carmack Amendment to the Interstate Commerce Act (49 U.S.C., section
14706) establishes motor carrier liability for loss or injury to property a
carrier transports. The Carmack Amendment preempts many state and common
law claims against carriers in order to create a “national scheme” of carrier
liability for goods lost or damaged during interstate transit.
In this case Plaintiffs Edward and Susan Campbell contracted with a number
of moving companies, including Defendants Allied Van Lines and Mayflower
Transit, Inc. to transport their household goods from
On appeal to the Ninth Circuit Court of Appeals, Defendants argued that
there was no statutory basis to support the award of attorneys fees.
Defendants maintained that pursuant to the Carmack Amendment, Plaintiffs
were not entitled to attorneys fees, because they did not first engage in
arbitration.
Section 14708 of the Carmack Amendment sets forth that carriers must offer
arbitration to shippers, such as the
The Ninth Circuit disagreed and held that nothing in section 14708 limits
attorney’s fees to shippers who first engage in arbitration. Contrary to
the argument of the carriers, the Court determined that the attorney fee
provision applies to “any court action,” not just arbitration. The Court
also rejected the Defendants’ argument that its’ decision runs contrary to
Congress’ intent to encourage arbitration. Looking to the plain meaning
of the statute, the Ninth Circuit determined that if Congress intended to limit
attorneys fees to arbitration proceedings, it would have explicitly said
so. The Ninth Circuit, therefore, affirmed the District Court
ruling.
COMMENT
This decision could have a potentially negative impact on carriers, because
it may encourage shippers to bypass cost-efficient arbitration and directly
pursue court actions.
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