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Admiralty Law Keyed to Maraist
Norfolk Southern Railway Co. v. Kirby
Citation:
543 U.S. 14 (2004)Facts
James N. Kirby, an Australian manufacturing company, sold machinery to General Motors in Huntsville, Alabama. Kirby hired International Cargo Control (ICC), a freight forwarder, to arrange for transportation from Sydney to Huntsville. ICC issued a bill of lading to Kirby with liability limitations, including a Himalaya Clause extending those limitations to any servant, agent, or independent contractor involved in performing the contract. Kirby separately insured the cargo with Allianz. ICC then contracted with Hamburg Süd, which issued its own bill of lading to ICC with similar liability limitations. Hamburg Süd hired Norfolk Southern Railway to transport the machinery from Savannah to Huntsville. During this inland transport, the train derailed, causing approximately $1.5 million in damages. After Allianz reimbursed Kirby, they jointly sued Norfolk in federal court. Norfolk claimed protection under the liability limitations in both bills of lading.
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