3rd Circ. Says State Missing-Packages Claims Are Preempted

By David Siegel (August 12, 2014, 5:14 PM EDT) -- In a precedential ruling, the Third Circuit on Tuesday affirmed the dismissal of a suit brought by Lloyds of London against United Parcel Service of America Inc. over missing packages, finding the Carmack Amendment preempts all state law claims involving goods lost by a ground carrier in interstate commerce.

The appeals panel also ruled the Carmack Amendment's "true conversion" exception is an exception to the amendment's liability-limiting features, not its preemptive scope, affirming a district court's decision to dismiss the underwriter's case for failing to state a claim.

Underwriters for First State Depository LLC, a company that provides accounting and custody...

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