49 U.S.C. § 14706 — Liability of carriers under receipts and bills of lading

(a) General Liability. (1) Motor carriers and freight forwarders. A carrier covered by this part must issue a receipt or bill of lading for property it receives for transportation. That carrier, and any other covered carrier that delivers the property, are liable to whoever is entitled to recover under that receipt or bill of lading. This liability covers actual loss or injury caused by (A) the receiving carrier, (B) the delivering carrier, or (C) any other carrier that handled the property along the route, including into an adjacent foreign country under a through bill of lading. It also applies to property re-routed under a tariff under section 13702, except for freight forwarders. Failing to issue a receipt or bill of lading does not remove the carrier's liability. The "delivering carrier" is the one that does the last leg of the trip closest to the destination -- not a carrier that only switches cars at the destination. (2) Freight forwarder. A freight forwarder is both the receiving and delivering carrier. If it uses a motor carrier to pick up property from a shipper, that motor carrier can sign the bill of lading or shipping receipt on the freight forwarder's behalf, with the freight forwarder's consent. With that consent, a motor carrier can also deliver the property to the named consignee using the freight forwarder's own delivery paperwork. (b) Apportionment. The carrier that issued the receipt or bill of lading, or that delivered the property, can recover from whichever carrier actually caused the loss or damage. This includes the amount that carrier had to pay the property's owner, plus reasonable costs of defending a lawsuit over it. (c) Special Rules. (1) Motor carriers. (A) Shipper waiver. A motor carrier can set rates that limit its liability to a value the shipper declares in writing or electronically, or that the carrier and shipper agree to -- but only if that value is reasonable for the shipment, and not for household goods described in section 13102(10)(A). (B) Carrier notification. If the carrier does not have to file its tariff with the Board, it must give the shipper, on request, a written or electronic copy of the rates, rules, and practices behind any applicable rate, clearly stating when those rates and rules apply. (C) Prohibition against collective establishment. Carriers acting together under an approved agreement cannot jointly discuss, consider, or approve rules to limit liability under this subsection. (2) Water carriers. If property is lost or damaged while in a water carrier's custody, that carrier's liability follows its own bill of lading and the law that applies to water transportation. The carrier that first received or that delivered the property has the same liability as the water carrier. (d) Civil Actions. (1) Against delivering carrier. A lawsuit under this section can be filed in a federal district court, or in a State court located in a State the defendant carrier operates through. (2) Against carrier responsible for loss. A lawsuit can also be filed in the district where the loss or damage happened, against the carrier accused of causing it. (3) Jurisdiction of courts. Either a U.S. district court or a State court can hear a case under this section. (4) Judicial district defined. "Judicial district" means a federal judicial district for a federal case, or the area a State court has authority over for a State case. (e) Minimum Period for Filing Claims. (1) In general. A carrier cannot shorten the claim period below 9 months, or the lawsuit period below 2 years, no matter what rule or contract it uses. The lawsuit clock starts running once the carrier gives written notice that it has disallowed part of the claim. (2) Special rules. An offer to settle does not count as disallowing a claim unless the carrier says in writing that part of the claim is disallowed and explains why. The same goes for a message from the carrier's insurer -- it only counts as a disallowance if the insurer says so in writing, gives a reason, and says it is acting on behalf of the carrier. (f) Limiting Liability of Household Goods Carriers to Declared Value. (1) In general. Carriers can petition the Board to set rates that limit their liability for household goods to a value the shipper declares in writing, or that both sides agree to. (2) Full value protection obligation. Unless the carrier gets a written waiver under (3), a carrier's top liability for lost, damaged, destroyed, or undelivered household goods equals the goods' replacement value -- capped at the shipment's declared value and subject to Board rules and applicable tariffs. (3) Application of rates. These lower "released rates" set under (1) do not apply unless the shipper has waived, in writing, the full-value protection described in (2). (g) Modifications and Reforms. (1) Study. The Secretary must study whether the loss-and-damage rules in this section, including liability limits, need to be changed. (2) Factors to consider. The study must at least look at (A) efficient delivery of transportation services, (B) harmony between international and different modes of transport, (C) the public interest, and (D) the interests of carriers and shippers. (3) Report. Within 12 months of January 1, 1996, the Secretary must send Congress a report on the study's results, along with any recommendations, including possible new legislation.