Jameson Rice is an Associate in Holland &
Knight's
Tampa office and William P Byrne is a Partner in Holland &
Knight's
Jacksonville office.
The standard practice for many motor carriers and railroads is
to quote rates for service that are subject to limited liability.
The shipper may request full liability coverage from the carrier
(for a higher rate), but in practice, shippers often obtain
insurance to cover the gap between the carrier's limited
liability and the value of the goods being shipped. This standard
practice is at odds with the default federal statutory liability
scheme for motor carriers and railroads (49 USC § 14706 and 49
USC § 11706, respectively, the "Carmack Amendment"),
which imposes upon the carrier liability for the "actual loss
or injury," unless the shipper and carrier have limited the
carrier's liability. One means of doing so is to enter into a
written agreement to limit liability. This clash between the
statutory scheme and common
