§10744. Liability for payment of rates

(a)(1) Liability for payment of rates for transportation for a shipment of property by a shipper or consignor to a consignee other than the shipper or consignor, is determined under this subsection when the transportation is provided by a rail, motor, or water common carrier under this subtitle. When the shipper or consignor instructs the carrier transporting the property to deliver it to a consignee that is an agent only, not having beneficial title to the property, the consignee is liable for rates billed at the time of delivery for which the consignee is otherwise liable, but not for additional rates that may be found to be due after delivery if the consignee gives written notice to the delivering carrier before delivery of the property-

(A) of the agency and absence of beneficial title; and

(B) of the name and address of the beneficial owner of the property if it is reconsigned or diverted to a place other than the place specified in the original bill of lading.

(2) When the consignee is liable only for rates billed at the time of delivery under paragraph (1) of this subsection, the shipper or consignor, or, if the property is reconsigned or diverted, the beneficial owner, is liable for those additional rates regardless of the bill of lading or contract under which the property was transported. The beneficial owner is liable for all rates when the property is reconsigned or diverted by an agent but is refused or abandoned at its ultimate destination if the agent gave the carrier in the reconsignment or diversion order a notice of agency and the name and address of the beneficial owner. A consignee giving the carrier, and a reconsignor or diverter giving a rail carrier, erroneous information about the identity of the beneficial owner of the property is liable for the additional rates.

(b) Liability for payment of rates for transportation for a shipment of property by a shipper or consignor, named in the bill of lading as consignee, is determined under this subsection when the transportation is provided by a rail or express carrier under this subtitle. When the shipper or consignor gives written notice, before delivery of the property, to the line-haul carrier that is to make ultimate delivery-

(1) to deliver the property to another party identified by the shipper or consignor as the beneficial owner of the property; and

(2) that delivery is to be made to that party on payment of all applicable transportation rates;

that party is liable for the rates billed at the time of delivery and for additional rates that may be found to be due after delivery if that party does not pay the rates required to be paid under clause (2) of this subsection on delivery. However, if the party gives written notice to the delivering carrier before delivery that the party is not the beneficial owner of the property and gives the carrier the name and address of the beneficial owner, then the party is not liable for those additional rates. A shipper, consignor, or party to whom delivery is made that gives the delivering carrier erroneous information about the identity of the beneficial owner, is liable for the additional rates regardless of the bill of lading or contract under which the property was transported. This subsection does not apply to a prepaid shipment of property.

(c)(1) A rail carrier may bring an action to enforce liability under subsection (a) of this section. That carrier must bring the action during the period provided in section 11706(a) of this title or by the end of the 6th month after final judgment against it in an action against the consignee, or the beneficial owner named by the consignee or agent, under that section.

(2) A water common carrier may bring an action to enforce liability under subsection (a) of this section. That carrier must bring the action by the end of the 2d year after the claim accrues or by end of the 6th month after final judgment against it in an action against the consignee or beneficial owner named by the consignee by the end of that 2-year period.

(3) A rail or express carrier may bring an action to enforce liability under subsection (b) of this section. That carrier must bring the action during the period provided in section 11706(a) of this title or by the end of the 6th month after final judgment against it in an action against the shipper, consignor, or other party under that section.

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1391 .)

In subsection (a), the first sentence is added in view of the consolidation: The word "When" is substituted for "Where" since it is more precise. The words "the consignee is liable for rates billed at the time of delivery for which the consignee is otherwise liable" are substituted for "such consignee shall not be legally liable for transportation charges in respect of the transportation of such property (beyond those billed against him at the time of delivery for which he is otherwise liable)" for clarity. The word "rates" is substituted for "charges" for consistency in view of the definition of "rate" in section 10102 of the revised title. The word "legally" is omitted as surplus. The words "but not for additional rates" are inserted for clarity. The words "of the fact" are omitted as surplus. The word "if" is substituted for "in the case of" for clarity. The word "place" is substituted for "point" as being more appropriate. The first clause of the 3d sentence is substituted for "In such cases" for clarity. The words "irrespective of any provisions to the contrary" are omitted as surplus. The words "notwithstanding the foregoing provisions of this paragraph" are omitted as unnecessary in view of the restatement. The words "property was transported" are substituted for "shipment was made" as being more precise.

In subsection (b), the first sentence is added for consistency in view of subsection (a) of the revised section. The last sentence is substituted for "(other than a prepaid shipment)" for clarity. The words "before delivery" are substituted for "prior to the time of delivery" since they are more precise. The words "after delivery if that party does not pay" are substituted for "and delivery is made . . . to such party without such payment" since they are more precise. The words "(as shipper, consignor, consignee, or otherwise)" are omitted as surplus. The words "in any event" are omitted as unnecessary. The word "However" is substituted for "except that". The words "A shipper . . . that gives . . . erroneous information . . . is liable" are substituted for "If the shipper . . . has given . . . erroneous information . . . such shipper . . . shall himself be liable" for clarity. The words "name and address of the beneficial owner" are substituted for "as to who the beneficial owner is" for clarity. The words "notwithstanding the foregoing provisions of this paragraph" are omitted as unnecessary in view of the restatement. The text of the last sentence of 49:3(3) is omitted   since   it   is   incorporated   throughout   the subsection.

In subsection (c), the words "by the end of" are substituted for "before the expiration of" for clarity.

Section Referred to in Other Sections

This section is referred to in sections 10705, 10711, 11126 of this title.