§11707. Liability of common carriers under receipts and bills of lading

(a)(1) A common carrier providing transportation or service subject to the jurisdiction of the Interstate Commerce Commission under subchapter I, II, or IV of chapter 105 of this title and a freight forwarder shall issue a receipt or bill of lading for property it receives for transportation under this subtitle. That carrier or freight forwarder and any other common carrier that delivers the property and is providing transportation or service subject to the jurisdiction of the Commission under subchapter I, II, or IV are liable to the person entitled to recover under the receipt or bill of lading. The liability imposed under this paragraph is for the actual loss or injury to the property caused by (1) the receiving carrier, (2) the delivering carrier, or (3) another carrier over whose line or route the property is transported in the United States or from a place in the United States to a place in an adjacent foreign country when transported under a through bill of lading and, except in the case of a freight forwarder, applies to property reconsigned or diverted under a tariff filed under subchapter IV of chapter 107 of this title. Failure to issue a receipt or bill of lading does not affect the liability of a carrier or freight forwarder. A delivering carrier is deemed to be the carrier performing the line-haul transportation nearest the destination but does not include a carrier providing only a switching service at the destination.

(2) A freight forwarder is both the receiving and delivering carrier. When a freight forwarder provides service and uses a motor common carrier providing transportation subject to the jurisdiction of the Commission under subchapter II of chapter 105 of this title to receive property from a consignor, the motor common carrier may execute the bill of lading or shipping receipt for the freight forwarder with its consent. With the consent of the freight forwarder, a motor common carrier may deliver property for a freight forwarder on the freight forwarder's bill of lading, freight bill, or shipping receipt to the consignee named in it, and receipt for the property may be made on the freight forwarder's delivery receipt.

(b) The carrier issuing the receipt or bill of lading under subsection (a) of this section or delivering the property for which the receipt or bill of lading was issued is entitled to recover from the carrier over whose line or route the loss or injury occurred the amount required to be paid to the owners of the property, as evidenced by a receipt, judgment, or transcript, and the amount of its expenses reasonably incurred in defending a civil action brought by that person.

(c)(1) A common carrier and freight forwarder may not limit or be exempt from liability imposed under subsection (a) of this section except as provided in this subsection. A limitation of liability or of the amount of recovery or representation or agreement in a receipt, bill of lading, contract, rule, or tariff filed with the Commission in violation of this section is void.

(2) If loss or injury to property occurs while it is in the custody of a water carrier, the liability of that carrier is determined by its bill of lading and the law applicable to water transportation. The liability of the initial or delivering carrier is the same as the liability of the water carrier.

(3) A common carrier of passengers may limit its liability under its passenger rate for loss or injury of baggage carried on passenger trains, boats, or motor vehicles, or on trains, or boats, or motor vehicles carrying passengers.

(4) A common carrier may limit its liability for loss or injury of property transported under section 10730 of this title.

(d)(1) A civil action under this section may be brought against a delivering carrier (other than a rail carrier) in a district court of the United States or in a State court. Trial, if the action is brought in a district court of the United States is in a judicial district, and if in a State court, is in a State, through which the defendant carrier operates a railroad or route.

(2)(A) A civil action under this section may only be brought-

(i) against the originating rail carrier, in the judicial district in which the point of origin is located;

(ii) against the delivering rail carrier, in the judicial district in which the principal place of business of the person bringing the action is located if the delivering carrier operates a railroad or a route through such judicial district, or in the judicial district in which the point of destination is located; and

(iii) against the carrier alleged to have caused the loss or damage, in the judicial district in which such loss or damage is alleged to have occurred.

(B) A civil action under this section may be brought in a United States district court or in a State court.

(C) In this section, "judicial district" means (i) in the case of a United States district court, a judicial district of the United States, and (ii) in the case of a State court, the applicable geographic area over which such court exercises jurisdiction.

(e) A carrier or freight forwarder may not provide by rule, contract, or otherwise, a period of less than 9 months for filing a claim against it under this section and a period of less than 2 years for bringing a civil action against it under this section. The period for bringing a civil action is computed from the date the carrier or freight forwarder gives a person written notice that the carrier or freight forwarder has disallowed any part of the claim specified in the notice. For the purposes of this subsection-

(1) an offer of compromise shall not constitute a disallowance of any part of the claim unless the carrier or freight forwarder, in writing, informs the claimant that such part of the claim is disallowed and provides reasons for such disallowance; and

(2) communications received from a carrier's or freight forwarder's insurer shall not constitute a disallowance of any part of the claim unless the insurer, in writing, informs the claimant that such part of the claim is disallowed, provides reasons for such disallowance, and informs the claimant that the insurer is acting on behalf of the carrier or freight forwarder.

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1453 ; Pub. L. 96–258, §1(14), June 3, 1980, 94 Stat. 427 ; Pub. L. 96–296, §26(b), July 1, 1980, 94 Stat. 818 ; Pub. L. 96–448, title II, §211(c), Oct. 14, 1980, 94 Stat. 1911 ; Pub. L. 99–521, §12(d), Oct. 22, 1986, 100 Stat. 2998 ; Pub. L. 100–690, title IX, §9114, Nov. 18, 1988, 102 Stat. 4535 .)

Historical and Revision Notes
Pub. L. 95–473

Revised Section	Source (U.S. Code)	Source (Statutes at Large)
11707(a)(1)	49:20(11) (1st sentence (less last 27 words before 1st semicolon and last 69 words before 1st proviso and less 1st and 2d provisos), 2d sentence 4th and last provisos).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §20(11) (less 1st sentence 2d proviso related to released value, 2d sentence less words before 2d proviso); added June 29, 1906, ch. 3591, §7, 34 Stat. 595 ; Mar. 4, 1915, ch. 176, §1, 38 Stat. 1196 ; Aug. 9, 1916, ch. 301, §1, 39 Stat. 441 ; Feb. 28, 1920, ch. 91, §§436–438, 41 Stat. 494 ; July 3, 1926, ch. 761, §1, 44 Stat. 835 ; Mar. 4, 1927, ch. 510, §3, 44 Stat. 1448 ; restated Apr. 23, 1930, ch. 208, §1, 46 Stat. 251 ; Aug. 9, 1935, ch. 498, §1, 49 Stat. 543 ; Sept. 18, 1940, ch. 722, §13(b), 54 Stat. 919 .
	49:319.	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §219; added Aug. 9, 1935, ch. 498, §1, 49 Stat. 563 ; May 16, 1942, ch. 318, §3, 56 Stat. 300 ; restated Aug. 7, 1942, ch. 552, §1, 56 Stat. 746 .
	49:1013 (1st sentence 1st cl.).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §413; added May 16, 1942, ch. 318, §1, 56 Stat. 295 .
11707(a)(2)	49:1013 (less 1st sentence 1st cl.).
11707(b)	49:20(12).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §20(12); added June 29, 1906, ch. 3591, §7, 34 Stat. 595 ; Mar. 4, 1927, ch. 510, §3, 44 Stat. 1448 ; Aug. 9, 1935, ch. 498, §1, 49 Stat. 543 ; restated June 3, 1948, ch. 386, 62 Stat. 295 .
11707(c)(1)	49:20(11) (1st sentence last 27 words before 1st semicolon and last 69 words before 1st proviso).
11707(c)(2)	49:20(11) (1st sentence 1st proviso).
11707(c)(3), (4)	49:20(11) (1st sentence 2d proviso related to liability). 49:319.
11707(d)	49:20(11) (2d sentence 2d proviso).
11707(e)	49:20(11) (2d sentence 3d proviso).

In the section, the text of 49:319 and 1013 (1st sentence 1st clause) is omitted as unnecessary in view of the restatement.

In subsection (a)(1), the words "providing transportation or service subject to the jurisdiction of the Interstate Commerce Commission under subchapter I, II, or IV of chapter 105 of this title" are substituted for "subject to the provisions of this chapter . . . property for transportation from a point in one State or Territory or the District of Columbia to a point in another State, Territory, District of Columbia, or from any point in the United States to a point in an adjacent foreign country" in view of the grant of jurisdiction to the Commission over transportation in interstate commerce in chapter 105 of the revised title. The word "injury" is substituted for "damage, or injury" as being more inclusive. The word "line" is substituted for "line or lines" as being more appropriate because of section 1 of title 1. The words "Failure to issue a receipt or bill of lading does not affect the liability of a carrier" are substituted for "shall be liable . . . whether such receipt or bill of lading has been issued or not" for clarity. The word "full" is omitted as surplus. The last sentence of subsection (a)(1) is substituted for 49:20(11) (2d sentence 4th proviso) for clarity.

In subsection (a)(2), the words "shall be deemed" are omitted as unnecessary.

In subsection (c)(1), the words "or be exempt from" are added for clarity. The word "unlawful" is omitted as surplus.

Subsections (c)(3) and (4) are inserted for clarity and are substituted for "the provisions hereof respecting liability for full actual loss, damage, or injury, notwithstanding any limitation of liability or recovery or representation or agreement or release as to value, and declaring any such limitation to be unlawful and void, shall not apply" for clarity.

In subsection (c)(4), the words "under section 10730 of this title" are inserted for clarity.

In subsection (d) the word "Trial" is added for clarity.

In subsection (e), the words "A carrier may not provide . . . a period of less than" are substituted for "it shall be unlawful for any such receiving or delivering common carrier to provide . . . a shorter period" for clarity. The word "regulation" is omitted as surplus. The words "any part of the claim" are substituted for "the claim or any part or parts thereof" as being more inclusive.

Pub. L. 96–258

This amends section 11707(e) to make a technical change to conform to the source provision.

Amendments

1988-Subsec. (c)(1). Pub. L. 100–690, §9114(a), inserted "and freight forwarder" after "common carrier".

Subsec. (e). Pub. L. 100–690, §9114(b)(1), inserted "or freight forwarder" after "carrier" in five places.

Subsec. (e)(2). Pub. L. 100–690, §9114(b)(2), inserted "or freight forwarder's" after "carrier's".

1986-Subsec. (a)(1). Pub. L. 99–521, §12(d)(1), inserted "and a freight forwarder" after "title" in first sentence, "or freight forwarder" after first reference to "carrier" in second sentence, ", except in the case of a freight forwarder," after "and" in third sentence, and "or freight forwarder" after "carrier" in fourth sentence.

Subsec. (a)(2). Pub. L. 99–521, §12(d)(2), struck out "subject to this subtitle" after "When a freight forwarder provides service".

1980-Subsec. (d). Pub. L. 96–448 designated existing provision as par. (1), inserted "(other than a rail carrier)" after "delivering carrier", and added par. (2).

Subsec. (e). Pub. L. 96–296 inserted provision prohibiting an offer of compromise from constituting a disallowance of any part of a claim unless the carrier informs the claimant, in writing, that such part of the claim is disallowed and provides reasons for the disallowance and prohibiting communications received from the carrier's insurer from constituting a disallowance of any part of a claim unless the insurer informs the claimant, in writing, that such part of the claim is disallowed, the reasons for the disallowance, and that the insurer is acting on behalf of the carrier.

Pub. L. 96–258 substituted "the carrier gives a person written notice that the carrier" for "that person receives written notice from the carrier that it".

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–521 effective 60 days after Oct. 22, 1986, see section 15 of Pub. L. 99–521, set out as a note under section 10102 of this title.

Effective Date of 1980 Amendments

Amendment by Pub. L. 96–448 effective Oct. 1, 1980, see section 710(a) of Pub. L. 96–448, set out as a note under section 10101 of this title.

Amendment by Pub. L. 96–258 effective Oct. 17, 1978, see section 3(d) of Pub. L. 96–258, set out as a note under section 10525 of this title.

Independent Investigation by Attorney General and Interstate Commerce Commission as to Whether Rail Carriers Should Continue To Be Subject to This Section; Issues; Report to Congress

Section 211(d) of Pub. L. 96–448 provided for an investigation and report within one year of Oct. 1, 1980, by Attorney General and Interstate Commerce Commission respecting continuation of applicability of section 11707 of this title to rail carriers and set forth issues to be addressed by the report.

Section Referred to in Other Sections

This section is referred to in section 10505 of this title; title 28 sections 1337, 1445.