Transportation General Business Civil Procedure

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April 2015 Independent Contractor Compliance and Misclassification News Update

The leading news in the area of independent contractor compliance and misclassification in April 2015 is the settlement by Macy’s and its logistics company in New Jersey with the delivery drivers and their helpers used by...more

Trucking Company Appeals ATB Decision Upholding Use Tax Assessment on Trucks Used in Interstate Commerce

In a case to watch for interstate trucking companies, Regency Transportation, Inc. is appealing a use tax assessment upheld by the Massachusetts Appellate Tax Board (“ATB”). Regency had challenged the Department of Revenue’s...more

Court of Appeal holds standard clause in bills of lading to be exclusive English jurisdiction clause

Hin-Pro International Logistics Ltd v Compania Sud Americana de Vapores SA [2015] EWCA Civ 401 - The Appellant Freight Forwarder commenced actions in China under 70 bills of lading, which incorporated the Respondent’s...more

Seventh Circuit Affirms Dismissal of EU 261 Claims - Direct Claims Under EU 261 Are Only Actionable in EU Member States

The ruling by the U.S. Court of Appeals for the Seventh Circuit in Volodarskiy v. Delta Airlines, Inc. follows numerous District Court opinions holding that EU 261 does not provide a right of action enforceable outside the EU...more

Court Precludes Discovery Of Reinsurance Information In Airport Construction Insurance Coverage Dispute

In a construction loss coverage litigation brought by Indianapolis Airport Authority (IAA) against its builders risk insurer, Travelers Property Casualty Company, IAA unsuccessfully attempted to issue a subpoena to...more

Appellate Court Upholds Dismissal of False Claims Act Case Against QVC, Denies that Qui Tam Plaintiff is Owed Monetary Proceeds,...

On March 31, 2015, the Appellate Court of Illinois, First District in a Rule 23 Order, upheld the dismissal of a False Claims Act (“FCA”) case against QVC, Inc. (“QVC”). In the dismissed case, the qui tam plaintiff had...more

Courts Consider "Airworthiness" Requirement and "As Is Where Is" Disclaimer

Courts continue to analyze the term "airworthy" and its implications. Recently, a District Court in the Western District of Tennessee weighed in on the scope of the term "airworthy" and its sometimes complicated relationship...more

Is payment of time charter hire a condition? The Astra reconsidered.

In Kuwait Rocks Co v AMB Bulkcarriers Inc (The Astra), Flaux J determined that the obligation to make punctual payment of hire under an amended NYPE time charter, whether on its own or in conjunction with an anti-technicality...more

Treaty Preempts Discrimination and Contract Claims From Seat Assignment Dispute - Although the Complaint Did Not Plead a Montreal...

The U.S. District Court for the District of Columbia granted an airline's pre-answer motion to dismiss a passenger's discrimination and breach of contract claims arising from the airline's alleged failure to assign the...more

Loss of cargo due to piracy held not to be an “in-transit loss”

Trafigura Beheer BV v Navigazione Montanari SpA [2015] EWCA Civ 91 - The subject vessel was chartered to carry a cargo of oil from Abidjan, Ivory Coast to Lagos, Nigeria. Clause 46 of the charter (on an amended BPVOY3...more

Court awards as damages costs incurred as a result of a breach of a law and jurisdiction clause

Swissmarine Services SA v Gupta Coal India Private Limited [2015] EWHC 265 (Comm) - The Claimant and Defendant entered into a COA which contained an English law and jurisdiction clause. When the Defendant failed to...more

Court considers the documents required to be supplied in support of a demurrage claim under BPVOY4

Kassiopi Maritime Co Ltd v Fal Shipping Co Ltd [2015] EWHC 318 (Comm) - Owners and Charterers had entered into a voyage charter on the BPVOY4 form. The charter contained the following provisions: -Clause 19.7.1:...more

Supreme Court Decides Alabama Department of Revenue v. CSX Transportation, Inc.

On March 4, 2015, the Supreme Court decided Alabama Department of Revenue v. CSX Transportation, Inc., No. 13-553, holding that a rail carrier can prove discrimination under the Railroad Revitalization and Regulation Reform...more

High Court rules on inconsistency in charterparty arbitration clauses and applicable curial law

Reed Smith (Lianjun Li and Min Li of the Hong Kong office, Nick Shaw and Halani Lloyd of the London office) recently represented the successful Charterers in Shagang South-Asia (Hong Kong) Trading Co. Ltd v Daewoo Logistics...more

Appellate Court Notes

- SC19298 - Getty Properties Corp. v. ATKR, LLC Defendants appealed eviction judgments against them for a series of gas stations located on properties owned by the plaintiffs. Getty Properties Real Estate Investment...more

Arbitration Clauses In Employment Contracts

The Federal Arbitration Act requires courts to enforce clauses in commercial contracts that require arbitration of disputes. The U.S. Supreme Court has ruled that transportation workers engaged in interstate commerce are...more

“OCEAN VICTORY” – Court of Appeal Decision

In Gard Marine & Energy Ltd v China National Chartering Co Ltd (Rev 1) [2015] EWCA Civ 16, the Appellant sub-charterers appealed the 2013 judgment of Teare J....more

“Brillante Virtuoso” held to have been a Constructive Total Loss

The High Court recently held that the “Brillante Virtuoso” (the “Vessel”) was a constructive total loss (“CTL”) following an attack by pirates in July 2011. Mr Justice Flaux made important key findings in the CTL claim, which...more

Foreign Airlines Move to Dismiss Rate-Fixing Litigation

Last Friday, foreign cargo carriers filed motions to dismiss an air freight price-fixing suit brought by Schenker AG, the logistics division of Germany’s national railway company, Deutsche Bahn, in the Eastern District of New...more

Recent Federal Court Rulings Favor Airlines in Frequent-Flyer Cases

In April 2014, the U.S. Supreme Court held that the Airline Deregulation Act (ADA) preempted a frequent flyer program member's common law claim for breach of the implied covenant of good faith and fair dealing because the...more

LITIGATION ALERT: The Motor Carrier Act/MCS-90 Endorsement Duty to Defend When No Coverage Exists?

Under the Motor Carrier Act of 1980 ("the Act"), no motor carrier shall operate a motor vehicle unless the carrier has obtained minimum levels of financial responsibility through insurance or other forms for bodily injury or...more

Flash No. 44 - 2014 … A Year In Review

2014 was uncomfortably fast. When did you last write 2013 on a check or a letter by mistake? If you did, rest assured that you are not alone. So, while we still have a few weeks before we have to face the start of a new year...more

The (Damaged) Freight Stops Here. (But Now What Do We Do With It?) The Pitfalls Of Salvage And Damage Mitigation

Unfortunately, amongst the millions of freight shipments of all modes that occur on a daily basis, some freight does get damaged. These damages spawn freight claims, and some of them generate litigation. A defense often...more

Huerta v. Pirker—NTSB Says No More “Gray Area” for Drone Operations

Unmanned aircraft systems (UAS) have operated within an uncertain legal framework while players across a rapidly growing range of commercial industries — from energy to rail transport to forestry to all types of...more

Frequent-Flyer Class Actions Likely To Be Less Frequent

Airlines offer frequent-flyer programs to reward loyal customers and attract new ones by awarding various perks based on the “miles” each member accumulates. In practice, however, frequent-flyer programs too often attract...more

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