Opinion ID: 794145
Heading Depth: 2
Heading Rank: 2

Heading: The BNSF-Matson Agreement

Text: 6 By incorporating the BNSF Intermodal Rules and Policies Guide, the BNSF-Matson agreement provides: 7 If a shipment moves under the terms of a through intermodal ocean bill of lading with BNSF as a participating rail carrier, the liability of BNSF will be no greater than the liability of the ocean carrier issuing the bill of lading. 8 Clause 7(2) of the ECB, in turn, limits Hapag Lloyd's liability: 9 [W]here the Carriage is to or from a port or final destination in the United States, the Carrier's limitation of liability in respect of the Goods shall not exceed U.S.$500.00 per package .... 10 The District Court concluded that these two provisions were applicable and operated together to limit BNSF's liability to $500 per package. In so holding, the District Court made four determinations: (1) the ECB constitutes a through bill of lading; (2) the ECB had been issued insofar as it governed the rights of the parties; (3) Caterpillar is bound by the ECB; and (4) the BNSF train originated at a port — Chicago — and was headed to a port — Long Beach — in the United States. 11 On appeal, American Home raises two points of error with respect to the District Court's factual determinations. First, American Home contends that the District Court improperly conflated two distinct concepts: whether the ECB had been issued and whether its terms, nonetheless, governed the parties. American Home concedes the terms of the ECB, but argues that the ECB had to have been issued in order for the BNSF-Matson agreement to limit BNSF's liability to that of Hapag Lloyd. Second, American Home contends that the District Court erroneously divided the shipment into two separate carriages — one inland by rail and another overseas by ship. According to American Home, Clause 7(2) of the ECB is inapplicable, because, when properly viewed as a single carriage from Morton to Singapore, the shipment was not to or from a port or final destination in the United States. We need not address these contentions, however, because BNSF is entitled to the same $500 per package limitation pursuant to a separate provision of the ECB.