# Petition for Writ of Certiorari — Illinois Central Gulf Railroad v. Air Products & Chemicals, Inc.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1984
- **Citation:** 469 U.S. 832

## Text

Office - Supreme Court, U.S.

r tt D

MAY 27 1904
IN THE

ALEXANDER L. STEVAS.

Supreme Court of the Unite

OCTOBER TERM 1983

ILLINOIS CENTRAL GULF RAILRCAD COMPANY,
Petitioner

VERSUS

AIR PRODUCTS AND CHEMICAL, INC.
Defendant

ON WRIT OF CERTIORARI TO THE UNITED STATES
COURT OF APPEALS FOR THE FIFTH CIRCUIT

PETITION FOR WRIT OF CERTIORARI

Boris F. Navratil, Trial Counsel
Murphy J. Foster, III
BREAZEALE, SACHSE & WILSON
Post Office Box 3197

Baton Rouge, LA 70821
Telephone: (504) 387 - 4000

Counsel for Petitioner
Illinois Central Gulf Railroad
Company

i
QUESTIONS PRESENTED

1. Whether the Carmack Amendment to the Interstate
Commerce Act, 49 U.S.C.A. Section 20(11), applies to a
situation where damages arise when a railroad tank car of
chemicals is mistakenly left at the receiver’s place of business,
and is not left as the result of an attempt to deliver it pur-
suant to any bill of lading?

2. Whether application of the Carmack Amendment to a
suit for damages resulting from a rail car’s misdelivery will
create bad public policy by discouraging consignee safety,
discouraging out of court settlements and encouraging
forum shopping, thus causing an additional burden on the
federal court system?

3. Whether a panel of a United States Circuit Court that
contains a judge who recuses himself after oral argument for
reasons that he knew or should have known existed prior to
oral argument, satisfies the provisions of 28 U.S.C.A. Section
46(b) which requires that a hearing be before a panel of three
qualified judges?

4. Whether, assuming the Carmack Amendment’s appli-
cability, it is necessary for the receiver of a misdelivered
tank car, in its action against the carrier, to prove special
knowledge or notice of the conditions giving rise to the
special damages sued for, such damages being the cost of
separation of the two similar chemicals; and if such knowl-
edge or notice is required, does there exist any evidence in
the record of this case to support an award of such special
damages?

TABLE OF CONTENTS

Page
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TABLE OF AUTHORITIES

Page

United States Code Articles:
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SE ee ae 10, 11
Ee
i A ke yee ses bese caeuee sd 4
nn pk cece sew encesssnaes i
Cases:
Adams Express Company vy. Kroninger, 226 US.

re 12
American Synthetic Rubber Corporation v. Louisi-

ana and Nashville Railroad Company, 422 F.2d

er wks eee eeennn nee i ae Oo
Chicago R. I. and P. R. Co. v. Furniture Forwarders

of St. Louis, Inc., 420 F.2d 385 (8th Cir. 1970) ..... 8,9
Globe Refining Company v. Landa Cotton Oil Co.,

ee Ry >, 13
Hadley vy. Baxendale, 9 Ex. 341, 156 Eng. Rep. 145

OST Ee ne rr
Litvak Meat Company v. Baker, 446 F.2d 329 (C.A.

ec pein ga ce bg th anaes 6
Marquette Cement Manufacturing Co. v. Louisville

and Nashville R.R. Co., 281 F.Supp. 944 (E.D.

Tenn. 1967), aff'd. 406 F.2d 731 (6th Cir.

EE ee Ue ee Vas sak onc ek #6 08 13,14, 15

iv

TABLE OF AUTHORITIES (Continued)

Page

F. J. McCarty Company v. Southern Pacific Co., 428

re ee ae. ies ook ue 4% 12
Reider v. Thompson, 339 U.S. 113, 70 S.Ct. 499

UE ON Nr aE el ee all 6
St. Louis Iron Mountain and Southern Railway Co.

v. Starbird, 23 U.S. 592, 37 S.Ct. 462 (1917) ......... 8
United States v. Turkette, 101 S.Ct. 2524, 452 U.S.

ee ee Se PROUD ok os54tre bo 056044 kd 6 e840 5

Von Der Ahe Van Lines, Inc. v. United States, 358
F.2d 999 (Court of Claim 1966), cert. denied,
gp oh & 5 . 3 Rei Hee Soe ae 8

No. A-843
IN THE SUPREME COURT OF THE UNITED STATES

AIR PRODUCTS AND CHEMICALS, INC.
Defendant

Versus

ILLINOIS CENTRAL GULF RAILROAD COMPANY
Petitioner

PETITIONER FOR WRIT OF CERTIORARI
TO THE UNITED STATES FIFTH CIRCUIT
COURT OF APPEALS

Petitioner prays for a writ of certiorari to review the
judgment of the United States Fifth Circuit Court of Appeals
in this case.

OPINIONS BELOW

The opinion of the United States District Court for the
Middle District of Louisiana, which is not reported, is re-
produced in Appendix A. The opinion of the United States
Fifth Circuit Court of Appeals, not yet reported, is re-
produced in Appendix B. The denial of appellant’s appli-
cation for a rehearing before the United States Fifth Circuit
Court of Appeals is reproduced in Appendix C.

JURISDICTION

The judgment of the United States Fifth Circuit Court of
Appeals was entered on December 16, 1983. The application
for a rehearing before the United States Fifth Circuit Court

2

of Appeals was timely filed on January 16, 1984. This
application was denied on January 31, 1984. The jurisdiction
of this court to review said denial is invoked under 28 U.S.
C.A. 1254(1).

PERTINENT STATUTORY PROVISIONS
28 U.S.C.A. Section 46(b)

“In each Circuit the court may authorize
the hearing and determination of cases and
controversies by separate panels, each con-
sisting of three judges, at least a majority of
whom shall be judges of that court, unless
such judges cannot sit because recused or
disqualified, or unless the chief judge of that
court certifies that there is an emergency
including, but not limited to, the unavail-
ability of a judge of the court because of
illness. Such panels shall sit at the times and
places and hear the controversies assigned as
the court directs. The United States Court
of Appeals for the Federal Circuit shall
determine by rule a procedure for the rota-
tion of judges from panel to panel to ensure
that all of the judges sit on a representative
cross section of the cases heard and, not-
withstanding the first sentence of this sub-
section, may determine by rule the number
of judges, not less than three, who constitute
a panel.” (emphasis added).

49 U.S.C.A. Section 20 (11)

“Any. . . railroad. . . receiving property
for transportation from a point in one state

3

. to a point in another state. . . shall
issue a receipt or a bili of lading therefore,
and shall be liable to the lawful holder there-
of for any loss, damage or injury to such
property caused by it or by any common

carrier. . . to which such property may be
delivered or over whose line or lines such
property may pass. . .or. . . any railroad

. delivering said property so received and
transported shall be liable to the lawful
holder of said receipt for the full actual
loss, damage or injury to such property
caused by it or by any such common carrier

. . to which such property may be delivered
or over whose line or lines such property
may pass. . .”’ (emphasis added).

STATEMENT OF THE CASE

On or about November 1, 1976, defendant Illinois Central
Gulf Railroad Company (hereinafter “ICG”) delivered tank
car SCMX 2534, along with three other similar tank cars
bearing separate numbers to Air Products & Chemicals, Inc.
in St. Gabriel, Louisiana (hereinafter Air Products). Tank
car SMCX 2534 was consigned by bill of lading to and for
Shell Chemical Company of Geismar, Louisiana and was lett
on the Air Products spur by mistake. The bill of lading 33660
covering tank car SCMX 2534 was properly delivered to
Shell Chemical Company of Geismar, Louisiana, and not
to Air Products.

The three other tank cars left on Air Products’ track,
containing isobutyl alcohol, were consigned to Air Products
and were covered by bills of lading previously received by
Air Products. Tank car SMCX 2534 contained normal butyl!

4

alcohol, which is similar to isobutyl alcohol in both sub-
stance and appearance. No weighbill for normal buty! alcohol
or for tank car SCMX 2534 had been received by Air Prod-
ucts. SCMX 2534 was simply “an extra” or “renegade” car,
left on Air Products’ spur track accidentally and not as an
attempt at delivery pursuant to any bill of lading furnished
to or required by Air Products.

Shortly after its arrival Air Products’ employees unloaded
SCMX 2534 into a million gallon storage tank containing
800,000 gallons of isobutyl alcohol. Tlie employees did not
consult their file of received bills of lading before so doing
(Trial transcript pp. 40-42); nor did they test the contents
of SCMX 2534 before unloading it although they possessed
the means for such testing. (Trial transcript pp. 39 and 66).
The only precautions the employees took was to test the
contents of tank car SCMX 2534 for the presence of con-
taminants.

Air Products brought an action in federal court to recover
damages for the cost incurred in the separation of the two
chemicals mixed as a result of the foregoing. Jurisdiction was
alleged on the basis of 28 U.S.C.A. 1337. The United States
Court for the Middle District of Louisiana held that Air
Products was entitled to a cause of action under the Carmack

Amendment and was awarded damages in the amount of
$73,339.12.

From the judgment of the District Court, ICG appealed to
the United States Fifth Circuit Court of Apneals. The case
was argued before Judge Tate, Davis, and Rubin. However,
following oral argument, Judge Rubin recused himself from
participation in this matter due to the existence of a business
relationship between himself and Mr. Gerald LeVan, a
partner in the firm of Breazeale, Sachse & Wilson, counsel for

5

the appellant, ICG. That business relationship, and thus the
grounds for recusal, existed prior to the oral argument.
Subsequently, judgment was rendered by Judges Tate and
Davis, affirming the judgment of the District Court.

REASONS FOR GRANTING THE WRIT
1. THE CARMACK AMENDMENT IS NOT APPLICABLE.

The question now presented to this Court is res nova:
Does the Carmack Amendment to the Interstate Commerce
Act, 49 U.S.C.A. Section 20 (11), afford a cause of action to
a party who receives delivery of a railroad car, but does not
have a bill of lading for the car, or any other documents
describing its contents?

The cardinal rule of statute interpretation is that when the
statutory language is clear and unambiguous, it is conclusive
and must be enforced. Unambiguous statutory language may
be disregarded only when there is a clear expression of
legislative intent that is contrary to such language. United
States v. Turkette, 101 S.Ct. 2524, 452 U.S. 576, 69 L.Ed.
2nd 246 (1981). The clear language of the Carmack Amend-
ment precludes its applicability in the instant case. Neither
Air Products nor the lower courts have been able to point
to any expression of legislative intent to indicate that the
amendment was intended to provide a cause of action to
anyone other than the lawful holder of a bill of lading.

The Carmack Amendment states in pertinent part:

“Any . . . railroad. . . receiving property
for transportation from a point in one state

. to a point in another state. . . shall
issue a receipt or a bill of lading therefore.
and shall be liable to the lawful holder thereof

6

for any loss, damage or injury to such
property caused by it or by any common
carrier. . . to which such property may be
delivered or over whose line or line such
property may pass. . .or. . . any railroad
. . . delivering said property so received and
transported shall be liable to the lawful
holder of said receipt for the full actual loss,
damage or injury to such property caused by
it or by any such common carrier. . . to
which such property may be delivered or
over whose line or line such property may
wee og

The purpose of the Carmack Amendment was to relieve
shippers of the burden of searching out a particular negligent
carrier from among the often numerous carriers handling an
interstate shipment of goods. Reider v. Thompson, 339 U.S.
113, 70 S.Ct. 499 (1950). The Carmack Amendment was
not designed as a comprehensive restatement of the law,
redefining with encyclopedic breadth and detail all rights
and responsibilities of interstate freight shippers and carriers.
Rather, the Act confines itself to a statement of the rights of
a legal holder of a receipt or bill of lading issued by a carrier
upon receiving property for interstate transportation and the
responsibilities of a carrier to such holder. Litvak Meat Com-
pany v. Baker, 446 F.2d 329 (C.A. 10th Cir. 1971). (empha-
sis added.) In the instant case the lawful holder of the SCMX
2534 bill of lading was Shell Chemical. Shell Chemical never
received SCMX 2534 pursuant to that bill of lading. There-
fore Shell Chemical mace a claim for damages for the lost
product under the Carmack Amendment that ICG paid.
That was the proper Carmack claim, rather than that of
Air Products.

+

Air Products did not hold a bill of lading for tank car
SCMX 2534 nor was that tank car delivered pursuant to any
other bill of lading held by Air Products. Therefore this
action does not fall under the Carmack Amendment. The
only possible cause of action Air Products has is a tort
action. In a tort action Air Products own negligence would
be a factor to be considered. Not having any documentation
with respect to tank car SCMX 2534, Air Products was
negligent in making the assumption that it also contained
isobutyl alcohol just as the three other cars delivered to it at
the same time, for which it did have bills of lading. Air
Products did not even test the contents of tank car SCMX
2534, although it had the ability to make such a test. It
made no effort to determine from representatives of de-
fendant why the car had been left in its plant. By taking
these precautions, Air Products could have easily avoided
the problems it encountered when it mixed the contents
of car SCMX 2534 with material contained in its storage
tanks. Defendant was entitled to have this negligence of
Air Products considered by the Court under applicable
comparative negligence rules.

In holding that the Carmack Amendment applied to
plaintiff's claims, the Fifth Circuit relied on American
Synthetic Rubber Corp. v. Louisville and Nashville Railroad
Co., 422 F.2d 462 (C.A. 6th Cir. 1970). In that case, the
plaintiff had a bill of ading for tank car GATX 84196
containing butalcne. In attempting to comply with the bill
of lading, the railroad delivered tank car GATX 84796,
containing ethylene oxide. The Court found that the Car-
mack Amendment was applicable to an abortive attempt
to deliver in accordance with an interstate contract of car-
riage - the bill of lading - and held the defendant liable under
the terms of the Act.

8

Although it is arguable that the American Synthetic case
should be overruled because the property delivered was not
covered by the bill of lading held by the plaintiff, (see
Judge O’Sullivan’s dissent, 422 F.2d at 469), it is not neces-
sary for this Honorable Court to go that far in order to
hold that the lower courts misapplied the Carmack Amend-
ment in this case. The American Synthetic case is easily
distinguishable because the defendant there made the de-
livery - albeit of a wrong car - pursuant to a bill of lading;
while in this case car SCMX 2534 was accidentally left with
Air Products without a bill of lading of any kind. The Ameri-
can Synthetic holding is arguably within the legislative intent
of making common carriers strictly liable to the holders of
bills of lading. The holding in this case goes far beyond any
such legislative intent. Every other case cited by the Court
below or Air Products involves a plaintiff who either held a
bill of lading for the car that was delivered, or a bill of lading
under which the defendant delivered a wrong car.

Plaintiff argues that if Carmack is inapplicable, then, at
the very least, an “implied contract of carriage’ existed
between the railroad and the plaintiff upon which recovery
may be had for damages allegedly caused by the misdelivery.
The same reasons that make the Carmack Amendment
inapplicable to Air Products’ claims must also lead to the
conclusion that Air Products has no general contractual claim
against {CG either. There simply was no contract between
ICG and Air Products from which the misdeliver’ of tank
car SCMX 2534 arose. The law is clear that contracts be-
tween shippers and consignees are evidenced only by valid
bills of lading issued for each individual car. See St. Louis
Tron Mountain and Southern Railway Co. yv. Starbird, 23
U.S. 592, 37 S.Ct. 462 (1917); Von Der Ahe Van Lines,
Inc. v. United States, 358 F.2d 999 (Court of Claims 1966),
cert. denied, 87 S.Ct. 83, 385 U.S. 837; and Chicago R. I.

9

and P. R. Company v. Furniture Forwarders of St. Louis,
Inc., 420 F.2d 385 (8th Cir. 1970). Each bill of lading
evidences a separate contract of carriage. For every carriage
contract which a-tually existed between Air Products and
ICG and which was evidenced by a bill of lading, ICG de-
livered the appropriate tank car. The purely accidental
relinquishment on Air Products’ spur track of car SCMX
2534 containing a different chemical, destined for a difterent
consignee, did not arise out of any contract or breach of a
contract between Air Products and Illinois Central Gulf
Railroad.

Holding the Carmack Amendment applicable to the
present fact situation would carry its imposition of strict
liability far beyond its intended scope and make common
carriers strictly liable for ordinary negligence and without
the benefit of reduction of damages by a percentage of the
plaintiff's comparative negligetice. In the absence of a clear
and unequivocal expression of legislative intent to create
such an onerous system of strict liability, this Honorable
Court should refrain from imposing it on common carriers.

2. THE APPLICATION OF THE CARMACK AMEND-
MENT WILL DISCOURAGE CONSIGNEE SAFETY,
DISCOURAGE SETTLEMENTS, AND ENCOURAGE
FORUM SHOPPING.

If consignees of railroad tank cars are allowed to utilize
the strict liability standard of the Carmack Amendment
rather than a comparative negligence standard of tort liabi-
lity, what will that do to the consignee’s need for stricter
safety standards? In light of the Fifth Circuit’s ruling, plain-
tiff consignees need only prove that the tank car was left
on their spur track. Regardless what plaintiff does subse-
quently with that tank car, if an accident occurs, the railroad

10

pays. This is bad public policy. The more reasonable ap-
proach would be to apply Louisiana’s comparative tort
negligence theory and examine the wrongs of both parties.

The Fifth Circuit has in this case held that a claim may lie
under either federal law, the Carmack Amendment, or state
tort law. If the consignee may choose which law to apply
he will undoubtedly opt for federal statute and its standard
of strict liability against which the railroad has no defense.
Since rail car misdelivery happens fairly frecuently why are
there so few federal court cases on the books? The reason
is due to the fact that in the past nearly all such misdelivery
cases have been resolved through settlement because of the
negligence of both parties. In this case, as in many others,
the railroad should not have left the car at that particular
location. Additionally, the consignee should not have un-
loaded the contents before confirming its identity. Now
however, with the American Synthetics case and this one,
there will be no more such settlements. A consignee will
only have to file his federal lawsuit and expect to be paid -
no questions asked! Again, this is bad public policy - it
discourages settlement and encourages forum shopping.

3. ICG’S APPEAL TO THE UNITED STATES FIFTH
CIRCUIT COURT OF APPEALS WAS NOT HEARD
BY A PROPER PANEL.

ICG recognizes that, under the provisions of 28 U.S.C.A.
Section 46(d), a decision by the United States Circuit Court
of Appeals may be made by a quorum of the judges who sit
on a panel and hear the argument in a given manner. If one
of the judges should happen to die, become too ill to parti-
cipate in the decision, cite, or remove himself for reasons
that arise after oral argument has begun, then the remaining
majority of the panel may still render a decision in that
matter.

11

Under the provisions of 28 U.S.C.A. Section 46(b), the
Circuit Court of Appeals has the power to decide the number
of judges that will constitute a panel; however, that number
shall not be less than three. Obviously, the judges who
make up a panel must be qualified to sit on that panel. In
this case, the panel did not constructively consist of three
qualified judges. Judge Rubin admitted that he was not
qualified to hear this matter due to his long standing business
relationship with one of the partners of the firm representing
the defendant, ICG.

Oral argument was made before the United States Fifth
Circuit Court of Appeals on March 24, 1983. Gerald LeVan
joined the firm of Breazeale, Sachse & Wilson in July of
1982. He and Judge Rubin had been receiving royalties from
a jeint publication since early 1982. Judge Rubin knew or
should have known that this relationship, and therefore the
possible conflict, existed before the oral argument began.

Judge Rubin’s failure to recuse himself prior to oral
argument, denied ICG the opportunity to possibly persuade
a third judge who might have in turn persuaded a second
judge towards appeilant’s position. The purpose of having
a three judge panel is to aliow for an_ intermingling of
thoughts and ideas relative to the decision making process
involved in every case. Obviously, the value of this thought
exchange is recognized by 28 U.S.C.A. 46(b) because of the
requirement that a panel consist of not less than three
judges. Admittedly, should Judge Rubin have become unable
to participate in the decision because of illness or grounds
that arose subsequent to oral argument, prior interpretations
of Section 46(d) would have allowed a quorum of the judges
to make the decision. However, because Judge Rubin failed
to recuse himself, for grounds which he knew or should
have known to exist prior to docketing, initial conferences

12

and prior to the beginning of oral argument, ICG was denied

the benefit of the exchange of thoughts and ideas envi-
sioned by Section 46(b). Therefore, ICG is entitled to a

rehearing before the Fifth Circuit Court of Appea!s because

it was constructively denied a hearing before a panel of

three qualified judges as required by 28 U.S.C.A. Section

46(b).

4. ASSUMING THAT THE CARMACK AMENDMENT
IS APPLICABLE, ICG EMPLOYEES DID NOT HAVE
SUFFICIENT KNOWLEDGE TO ALLOW AIR PROD-
UCTS TO RECOVER SPECIAL DAMAGES.

The Fifth Circuit erred when it held that Air Products
was entitied to recover special damages. The Court’s holding
clearly evidences the fact that it considered the damages
that it awarded to Air Products to be special damages.
The award is tased upon the finding that the railroad
employees should reasonably have anticipated (1) that
Air rroducts did not have a procedure for checking tank
cars received against bills of lading (2) that Air Products did
not test chemicals before unloading them and (3) that there
was more than one type of butyl alcohol or the results of
mixing “iso” and “‘normal”’ buty] alcohol.

Normally, the measure of damages for a carrier’s breach
of contract to transport and deliver is the value of the
shipment at the correct place and time of delivery, less
transportation charges paid by the claimant. It is clear that
a carrier’s liability is not that of an insurer or a guarantor.
Adams Express Co. v. Kroninger, 226 U.S. 491, 33 S.Ct.
148 (1913). The Carmack Amendment did not expand this
common law of carrier’s liability. F. J. McCarty Co. v.
Southern Pacific Co., 428 F.2d 690 (9th Cir. 1970). The
court in McCarty stated:

13

“Only those damages can be recovered as
may be reasonably supposed to have been in
the contemplation of the parties at the time
they made the contract.”

See also Marquette Cement Manufacturing Co. v. The Louis-
ville and Nashville Railroad Company, 281 F.Supp. 944
(E.D. Tennessee 1967) affirmed 406 F.2d 731 (6th Cir.
1969), in which the court stated:

“The Carmack Amendment did not alter the
common law as to special damages. Knowl-
edge is a prerequisite for liability.’’ (emphasis
added).

See also Hadley v. Baxendale, 9 Ex. 341, 156 Eng. Rep. 145
(1854) ana Globe Refining Company v. Landa Cotton Oil
Co., 190 U.S. 540, 23 S.Ct. 754 (1902).

The costs incurred by Air Products in separating the mis-
delivered normal butyl alcohol from the isobutyl alcohol
were clearly special damages falling within the special knowl-
edge rule. In Marquette, supra, the carrier misdelivered
“air-entrained’’ cement suitable only for making concrete
pipe, to the ready-mix division of a materials company. The
ready-mix concrete made from this shipment was defective
and suit was brought against the railroad to recover damages
that resulted from the misdelivered cement. The Court
awarded the plaintiff the value of the shipment and the
freight charges but refused to award any special damages.
With regard to special or consequential damages not awarded,
the Court stated:

“With respect to the remaining items of
damage claimed by the plaintiff, that is the

14

cost of testing and removing the defective
concrete from the construction sites, such
damages may be considered only as special
or consequential damages. With respect to
their recovery the issue then arises as to
whether the special circumstances giving
rise to the damages were communicated to
or were known by the defendant at the time
the contract of carriage was made. In order
to recover special damages under the cir-
cumstances of this case, it must appear that
at the time of the making of the contract
of carriage that the defendant had notice
or knowledge of the special conditions
rendering such damages the natural and
probable result of the breach [citations
omitted] .” (At page 950).

The costs incurred by the plaintiff in Marquette in re-
moving or separating defective cement from the construction
sites are closely analogous to the costs incurred by Air
Products in the instant case in separating the normal butyl]
alcohol from the isobutyl alcohol. Again, and clearly, such
damages are “special damages’’.

it is also evident that Air Products has not shown that ICG
or any of its employees, at the time of the making of the
contract of carriage with Shell Chemical or at the time of
entering the contract of carriage with Air Products for the
isobutyl alcohoi, had any “notice or knowledge of the
special conditions” rendering such damages, “the cost of
alcohol separation” or the natural and probable result of a
breach of contract (the misdelivery). Each of the tank cars of
both “iso” and “normal” butyl alcohol were marked with
the same placard - “Dangerous Butyl Alcohol”. The record

15

is totally void of any evidence showing that any ICG em-
ployee had any knowledge that there even existed more
than one type of butyl alcohol, much less knowledge of
the damages which might result from the mixing of the
two chemicals.

The mere fact that the bill of lading for tank car SCMX
2534 sent to Shell Chemical Company at Geismar was
correctly marked stating that it contained normal butyl
alcohol does not establish sufficient knowledge for ICG to
have known the possible consequential results of misdelivery.
The Marquette decision specifically found such information
on the bill of lading to be insufficient to establish special
knowledge on the part of the railroad. The Court stated
in Marquette:

“The court is of the opinion that the evidence
does not establish such notice or knowledge
upon the part of the defendant. It is true
that the bill of lading did designate the ship-
ment as ‘air-entrained cement’. This infor-
mation is not sufficient, however, to put the
carrier on notice as to the use for which it
would be put. Nor is it sufficient to put the
carrier on notice that an additional ‘air-
entraining agent would be added to the
cement by the plaintiff, thereby rendering
it unsuited for structural use. The notice here
received by the carrier by the inclusion of
the words ‘air-entrained cement’ upon the bill
of lading was not sufficient to render reason-
ably foreseeable the subsequent events which
resulted in the expenses incurred by the
plaintiff in testing and removing the de-
fective concrete.” Marquette at 950-951.

16

The special damages claimed by Air Products are simply not
supported by any evidence and are not a proper part of any
award in this case.

CONCLUSION

The decision of the Court of Appeals for the Fifth Circuit
is contrary to the clear and unambiguous language of the
Carmack Amendment to the Interstate Commerce Act.
Further it will frustrate settlement possibilities in cases of
rail car misdeliveries between carriers and consignees and
will encourage forum shopping. The decision is of national
importance and merits this Court’s attention. The petition
for writ of certiorari should be granted.

RESPECTFULLY SUBMITTED:

BREAZEALE, SACHSE & WILSON
Post Office Box 3197

Baton Rouge, LA 70821
Telephone: (504) 387 - 4000

Boris F. Navratil, Trial Attorney

Musphy | Jeitin., I per Bes
Murphy J. Foster, III

17
PROOF OF SERVICE

I, Boris F. Navratil, attorney for Illinois Central Gulf
Railroad Company, petitioner herein, and a member of the
bar of the Supreme Court of the United States, hereby
certify that on the 30th day of May, 1984, I served the
foregoing petition for a writ of certiorari, and its appendices,
on Air Products and Chemical, Inc., respondent in connec-
tion with this application for a writ of certiorari, by mailing
three copies thereof to its counsel of record, Wallace A.
Hunter, Esquire, Suite 614, Louisiana National Bank Build-
ing, 451 Florida Street, Baton Kouge, Louisiana 70801.

Bors t Nawratit nor BPS

Boris F. Navratil

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APPENDIX A

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA

CIVIL ACTION
NUMBER 80-522-A

Received May 13, 1982

AIR PRODUCTS AND
CHEMICALS, INC.

VERSUS

ILLINOIS CENTRAL GULF
RAILROAD COMPANY

FINDINGS OF FACT AND CONCLUSIONS OF LAW
1. Findings of Fact

1. Plaintiff, Air Products, is a corporation organized and
existing under the laws of the State of Delaware, with its
principal place of business in the Commonwealth of Pennsyl-
vania. Illinois Central Gulf Railroad is a corporation, autho-
rized to do and doing business in the State of Louisiana,
with its principal place of business in the State of Illinois.

2. Plaintiff is the owner of a chemical plant facility
located near St. Gabriel, Louisiana. In connection with its
operations at this facility in November, 1976, plaintiff used
a liquid raw material known as “isobutanol’ routinely
purchased under a contract between plaintiff and Shell
Chemical Company, Houston, Texas. The raw material
ordered was shipped by rail from Shell’s facility in Houston

A-2

to plaintiffs facility in St. Gabriel as requisitioned by plain-
tiff.

3. The parties have stipulated to the following facts:

a. On or about November 1, 1976, car no.
SCMX 2534, along with several other cars was delivered
to Air Products and Chemicals, Inc. on its inbound switch-
track at St. Gabriel, Louisiana, by Illinois Central Gulf
Railroad.

b. The product contained in Car No. SCMX
2534 was normal butanol.

c. Tank car SCMX 2534 was not consigned to
Air Products and Chemicals, Inc. but to Shell Chemical at
Geismar, Louisiana.

d. Tank car no. SCMX 2534 together with three
other cars delivered to Air Products on November 1, 1976,
were shipped from Shell Chemical, Houston, Texas.

e. All four cars which were delivered to Air
Products on November 1, 1976, including car no. SCMX
2534, were identified by placards reading “contains butyl
alcohol.”

f. There are four types of butyl alcohol, one of
which is “normal butanol” and another which is “‘iso-
butanol.”

g. Air Products and Chemicals, Inc. had placed
an order with Shell Chemical, Houston, Texas for ship-
ments of “‘isobutanol” which it used at its St. Gabriel,
Louisiana facility.

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h. Tank car no. SCMX 2534 was unloaded by
representatives of Air Products and Chemicals, Inc. into
an above ground storage tank which at the time contained
811,873 gallons of “‘isobutanol.”’

i. Following the unloading of tank car no.
SCMX 2534 it was discovered by representatives of Air
Products that the car SCMX 2534 had not been consigned
to Air Products but was on consignment to Shell Chemical
at Geismar, Louisiana, and that the product contained
therein was normal butanol.

j. Both normal butanol and isobutanol are clear
and colorless liquids of the same viscosity.

4. The established procedure was that a copy of the bill
of lading would be mailed to Air Products near the time the
shipment was placed with the railroad.

5. Air Products would receive these bills of lading at
various times, sometimes before and sometimes after the
shipment had arrived.

6. Plaintiff was holder of the three bills of lading for
the three tank cars of isobutanol ordered from Shell in
Houston.

7. When these tank cars arrived in Geismar, Louisiana,
it was normal procedure for ICG to call Air Products and
inform them of the number of cars arriving that day.

8. Air Products then made up a switch list from the
information supplied by ICG and by the plant as to how
many cars were already at the plant and where they were
located.

A-4

9. The switch list told the railroad how many tanks to
deliver and where to place them, either on track A or B.

10. When cars are delivered, Air Products runs an analysis
on the contents of the tank cars to obtain the quality of
the chemical, bu“ does not run tests to ascertain the type of
chemical contained therein.

11. Air Products unloads all deliveries of isobutanol
into a large storage tank at the plant and the railroad em-
ployees were aware of that established procedure.

12. It was not feasible to wait until the bills of lading
were received before unloading, because Air Products han-
dled about 19 tank cars of isobutanol a month during the
relevant period of time.

13. Since the plant uses this chemical every day, plain-
tiff cannot allow tank cars to sit idly by and stack up; they
must be unloaded for processing and to make room for
additional cars.

14. The load of normal butanol contaminated contents of
the storage tank which contained at that time about 800,000
gallons of product.

15. Air Products used its own plant facilities to decon-
taminate a substantial portion of the product. Use of the
plant facilities minimized damages.

16. After the initial processing at the Air Products Plant,
an additional quantity of raw material remained contami-
nated and plaintiff, after shipping a test truck load of the
material, shipped the remainder of the contaminated product
to Dow Badische Company at Freeport, Texas for further

A-5

processing. That company was able to decontaminate the
remaining amount of product.

17. During the processing at the Air Products Plant and
at Dow Badische Company, a certain amount of product was
lost due to the distillation process employed.

18. Plaintiff claims that it sustained damages in the
amount of $95,184.48 as a result of the misdelivery of the
tank car containing normal butanol. Although plaintiffs
evidence was somewhat inconsistent and uncertain, plaintiff
has established the following damages caused by the mis-
delivery of the tank car by a preponderance of the evidence:

a. Cost of “reprocessing” contaminated material at Air
Products Plant:

1. Labor and materials $11,199.30
Fuel Oil Cost 41,101.86
Electricai Cost 1,880.26
Raw material loss 11,039.61

SUBTOTAL 65,221.03

b. Cost of reprocessing contaminated material at Dow
Badische Company and transportation to and from that
plant:

1. “Reprocessing” cost $15,656.60
Delivery charges and

cost of initial truck load 9,720.73

Raw material loss 4,277.89

SUBTOTAL $29,655.22

Ba AD el ut $94,876.25

As

19. Air Products shipped the entire contents of the
misdelivered tank car to Dow Badische and made no attempt
to recover it. The value of the contents of the tank car was
$21,537.13.

20. The defendant railroad paid the sum of $21,537.13
to Shell Chemical Company, the concern which had actually
ordered the contents of the misdelivered tank car.

II. Conclusions of Law

1. The court has jurisdiction under 28 U.S.C. §1337
and under 28 U.S.C. § 1332.

2. The Carmack Amendment, 49 U.S.C. §20(11) is
applicable to this litigation and plaintiff has standing to
assert a cause of action for breach of a contract of carriage
in interstate commerce. American Synthetic Rubber Corp. v.
Louisville & N.R. Co., 422 F.2d 462 (6th Cir. 1970); Mar-
quette Cement Mfg. Co. v. Louisville & Nashville Railroad
Co., 281 F.Supp. 944 (E.D. Tenn. 1967), affirmed 406 F.2d
731 (6th Cir. 1969); Stroh Brewery Co. v. Grand Truck
Western Railroad Co., 513 F.Supp. 827 (E.D. Mich. 1981).

3. An interstate carrier is liable not only for the delay
in delivery but also for misdelivery and for the foreseeable
damages thereby incurred by the consignee; that is to say,
despite the fact that plaintiff did not hold a bill of lading
for the misdelivered tank car, it may nevertheless assert
a cause of action for breach of its contract of carriage and
for foreseeable damages thereby incurred. American Syn-
thetic Rubber Copr. v. L. & N. Railroad Co., supra; see
also, Adams Express Co. v. Croninger, 226 U.S. 491, 33 S.Ct.
148, 57 L.Ed. 314 (1913); New York, Philadeiphia & Nor-
folk Railroad Co. v. Peninsula Produce Exchange, 240 US.
34, 36 S.Ct. 230, 60 L.Ed. 511 (1916).

A-7

4. Defendant seeks to limit its liability to ‘tnon-con-
sequential damages” suffered by plaintiff, specifically the
cost of delivering a proper tank car containing isobutanol as
called for in the contract of carriage. Defendant cites Mar-
quette Cement Mfg. Co. v. Louisville & Nashville Railroad
Co., 281 F.Supp. 944 (E.D. Tenn. 1967), affirmed 406 F.2d
731 (6th Cir. 1969), for that proposition. Whatever may
have been the situation in that case, the court finds that it
was foreseeable to the employees of the railroad in this
case that damages such as those sustained by Air Products
could be caused by a misdelivery of product.

5. The railroad employees were on notice that ship-
ments of isobutanol were unloaded into a storage tank of
1,000,000 gallon capacity. Obviously all such chemicals were
mixed when unloaded into the tank. It is not necessary that
the employees know the exact properties of the chemicals
involved for them to reasonably anticipate that a mixture of
chemicals in the tank would result in contaminaticn of the
entire contents. It is also foreseeable that it would cost
money to decontaminate the contents of the storage tank.
The court finds that these damages sustained by Air Products
were foreseeable as a result of the misdelivery of a tank car
containing chemicals other than those requested.

6. There was no contributory negligence upon Air
Products relating to failure to run extensive chemical analyses
of the products prior to unloading. All the railroad had to do
was to make the correct delivery and there was no necessity
for any chemical analysis. The railroad’s contract of carriage
calls for it to make correct deliveries.

7. The value of the chemical contained in the mis-
delivered tank car must be deducted from the award in favor
of Air Products since it retained that chemical and apparently

A-8
gave it away to Dow Badische Company.

8. There will judgment herein in favor of plaintiff and
against defendant in the sum of $94,876.25, subject to a
credit in the amount of $21,537.13, or $73,339.12 together
with interest and costs.

Baton Rouge, Louisiana, May 12, 1982.

/s/ John V. Parker
JOHN V. PARKER,
CHIEF JUDGE
MIDDLE DISTRICT OF
LOUISIANA

A-9
APPENDIX B
CORRECTED

AIR PRODUCTS & CHEMICALS v. ILL. CENT. GULF
R.R.

AIR PRODUCTS AND CHEMICALS,
INC., Plaintiff-Appellee,

V.

ILLINOIS CENTRAL GULF
RAILROAD COMPANY,
Defendant-Appeilant.
No. 82-3356

United States Court of Appeals,
Fifth Circuit.

Dec. 16, 1983.

Consignee brought action against carrier to recover dam-
ages resulting misdelivery of chemicals. The United States
District Court for the Middle District of Louisiana, John V.
Parker, Chief Judge, entered judgment in favor of consignee,
and carrier appealed. The Court of Appeals, Tate, Circuit
Judge, held that: (1) carrier was liable to consignee for
misdelivery of chemicals, and (2) consignee was entitled to
recover processing costs for decontamination of large storage
tank contaminated by wrong chemical delivered by carrier.

Affirmed.

A-10
1. Carriers key 69(1)

Statute providing that a railroad is required to issue a bill
of lading upon receiving property for transportation in inter-
state commerce, and that railroad is liable to lawful holder of
bill of lading for damages with regard to property trans-
ported, provides exclusive remedy for a breach of a contract
of carriage provided by a bill of lading, including foreseeable
damages resulting from delivery of different cargo than that
specified by bill of lading issued to damaged consignee.
Interstate Commerce Act, §20(11), 49 U.S.C. (1976 Ed.)
§20(11).

2. Carriers key 93

Carrier’s delivery of different chemicals than those for
which bills of lading were issued and which carrier had con-
tracted to deliver to consignee rendered carrier liable under
statute providing that a railroad is required to issue a bill
of lading upon receiving property for transportation in
interstate commerce, and that railroad would be liable to
lawful holder of bill of lading for damages with regard to
property transported, even though no bill of lading was
issued to consignee with regard to misdelivered chemicals,
since misdelivery plainly resulted from a breach in carrier’s
duty to deliver to consignee the right product as intended
by series of bills of ladings issued by railroad to transport
the given chemical to consignee’s premises in accordance
with their terms. Interstate Commerce Act, §20(11), 49
U.S.C. (1976 Ed.) §20(11).

3. Carriers key 94(4)
Fact that a mixture of chemicals would result in con-

tamination of entire contents of consignee’s large storage
tank, and that it would cost money to remove the contami-

A-11

nation, should reasonably have been anticipated by carrier's
employees, entitling consignee to recover reprocessing costs
of decontaminating storage tank caused by carmier’s mis-
delivery to consignee’s premises of chemical which was
intended for another consignee and which caused contami-
nation.

Appeal from the United States District Court for the
Middle District of Louisiana.

Before TATE, Circuit Judge, and DAVIS,* _ District
Judge.**

TATE, Circuit Judge:

The defendant carrier (“Illinois Central’) appeals. The
district court judgment awarded the plaintiff consignee
(“Air Products”) damages caused by a misdelivery to its
premises of contaminating cargo intended for another con-
signee. Air Products’ complaint is based upon the Carmack
Amendment. 49 U.S.C. §20(11) (1906). The district
court awarded Air Products the damages resulting from
the breach through such misdelivery of Illinois Central’s
contract to deliver the intended cargo to Air Products,
as specified by the bill(s) of lading issued by Illinois Central
to Air Products. Illinois Central appeals, principally con-

*Judge Davis participated by designation in the oral argument of this
case as a United States District Judge for the Western District of Louisi-
ana. Since that time he has been appointed as a Fifth Circuit Judge.

** This opinion is being entered by a quorum of this panel pursuant to
28 U.S.C. §46(d). Judge Rubin was a member of the panel that heard
oral argument, but subsequently disqualified himself from further
participation in this case.

A-12

tending that the present consignee does not have a cause
of action against a carrier for breach of a contractual obliga-
tion under the Carmack Amendment, because, as to the
misdelivered damage-causing cargo, the consignee Air Prod-
ucts had not been issued a bill of lading and, therefore, as to
this cargo, no contract was made between the parties.

[1] We affirm. We agree with the district court that the
Carmack Amendment, as judicially interpreted, provides an
exclusive remedy for a breach of a contract of carriage
provided by a bill of lading, and that this remedy includes
foreseeable damages resulting from misdelivery of differ-
ent cargo than that specified by the bill of lading issued to
the damaged consignee. This conclusion, moreover, is in
accord with the only other reported decision on the issue
cited to us. American Synthetic Rubber Corporation y.
Louisville & Nashville Railroad Company, 422 F.2d 462
(6th Cir. 1970).

This litigation arises out of the following facts:

The plaintiff-consignee, Air Products, had ordered 400,
000 gallons of a chemical from the shipper (‘‘Shell’’) to be
delivered over a period of days, during which a series of
bills of lading were issued by the defendant railroad, Illinois
Central, one for each tank car delivered without incident.

On November 1, Illinois Central delivered four tank cars
to Air Products, but one of them (for which a bill of lading
had been issued to a different consignee at another location)
was delivered at Air Products’ premises through the rail-
road’s misrouting error. This fourth tank car contained a
chemical similar to and indistinguishable in appearance to
the chemical ordered by Air Products that was intended to
be delivered. Without fault on the part of Air Products,
which had then tested the liquids for impurities, all four

A-13

tank cars thus received were, in accordance with the normal
practice, emptied into a large storage tank of the chemical
on its premises - but an ingredient in the misdelivered chemi-
cal contaminated the entire contents of the large storage
tank. The reprocessing costs caused net damages of $73,393.
12. The district court awarded this amount to Air Products.

In its complaint, Air Products kad alleged that the “mis-
delivery” of the tank car entitled it to recover under the
Carmack Amendment.! Pertinently to the present cause of
action, this statutory enactment provides that a railroad is
required to issue a bill of lading upon receiving property for
transportation in interstate commerce, and that this railroad
“delivering said property so received and transported shall
be liable to the lawful holder of [the] bill of lading” for
damages with regard to the property transported. 49 U.S.C.
§ 20(1 1) (1906).2

1. This action was originally filed in the Northern District of Ilinois
seeking damages primarily under a tort theory and alternatively under
the Carmack Amendment for breach of contract. After two venue
transfers, the action was retained by the Middle District of Louisiana.
The plaintiff's tort action was met with a motion to dismiss based on
the Louisiana one year prescriptive period. The district court ruled
that Dlinois Central’s misdelivery of the car breached the railroad’s
obligation under its contract of carriage and granted a recovery to Air
Products. The district court, therefore, found it unnecessary to de-
termine whether plaintiff’s tort action had prescribed under Louisi-
ana law.

2. The Carmack Amendment pertinently provides:

Any * * * railroad * * * receiving property for
transportation from a point in one state * * * toa
point in another state * * * shall issue a receipt or
bill of lading therefor, and shall be liable to the law-
ful holder thereof for any loss, damage, or injury to

A-14

Despite the apparent statutory limitation to recovery of
damage caused to the property itself transported, the Su-
preme Court (as the present carrier does not dispute) from its
earliest interpretation has consistently construed the Amend-
ment as likewise imposing liability upon the carrier for all
reasonably foreseeable consequential damages resulting from
a breach of the contract of carriage, including those resulting
from nondelivery of the shipped goods as provided by the
bill of lading. See, e.g., Southeastern Express Company vy.
Pastime Amusement Company, 299 U.S. 28, 57 S.Ct. 73,
81 L.Ed. 20 (1936); New York, Philadelphia & Norfolk
Railroad Company v. Peninsula Produce Exchange of Mary-
land, 240 U.S. 34, 36 S.Ct. 230, 60 L.Ed. 511 (1906); Adams
Express Company v. Croninger, 226 U.S. 491, 33 S.Ct. 148,
57 L.Ed. 314 (1913). “The words ‘any loss, damage, or in-
jury to such property’. . . are comprehensive enough to
embrace all damages resulting from any failure to discharge
a carrier’s duty with respect to any part of the transportation
to the agreed destination.” Peninsula Produce Exchange,
supra, 240 U.S. at 38, 36 S.Ct. at 232. See also Georgia,
Florida & Alabama Railway Company vy. Blish Milling Co.,
241 U.S. 190, 196, 36 S.Ct. 541, 544, 60 L.Ed. 948 (1916).

2. Continued

such property caused by it or by any common
carrier * * * to which such property may be
delivered or over whose line or lines such property
may pass * * * orany * * * railroad * * * deliv-
ering said property so received and transported
shall be liable to the lawful holder of said receipt or
bill of lading * * * for the full actual loss, damage,
or injury to such property caused by it or by any
such common carrier * * * to which such proper-
ty may be delivered or over whose line or lines
such property may pass * * *. 49 U.S.C. §20(11)
(1906).

A-15

This broad interpretation of a carrier's liability under its
bills of lading was premised upon what the Court conceived
to be a paramount object of the legislation - to provide a
uniform rule that the carrier issuing the bill of lading would
be responsible to the consignee for all loss, damage, or
delay arising out of the contract to transport the goods so
shipped. Peninsula Produce Exchange, supra, 240 U.S. at
37, 36 S.Ct. at 231; Adams Express Company, supra, 226
U.S. at 503-10, 33 S.Ct. at 151-53; Atlantic Coast Line
Railroad Company yv. Riverside Mills, 219 U.S. 186, 199-
203, 31 S.Ct. 164, 167-70, 55 L.Ed. 167 (1911). Moreover,
a purpose was to substitute a paramount and uniform nation-
al law as to the rights and liabilities of interstate carriers
subject to the Amendment. As stated in Adams Express
Company, 226 U.S. at 505-06, 33 S.Ct. at 152:

That the legislation supersedes all the
regulations and policies of a particular state
upon the same subject results from its general
character. It embraces the subject of the
liability of the carrier under a bill of lading
which he must issue, and limits his power to
exempt himself by rule, regulation, or con-
tract.

* * * * * *

To hold that the liability therein declared
may be increased or diminished by local
regulation or local views of public policy will
either make the provision less than supreme,
or indicate that Congress has not shown a
purpose to take possession of the subject.
The first would be unthinkable, and the
latter would be to revert to the uncertainties
and diversities of rulings which led to the

A-16

amendment. The duty to issue a bill of lading,
and the liability thereby assumed, are covered
in full; and though there is no reference to
the effect upon state regulation, it is evident
that Congress intended to adopt a uniform
rule and relieve such contracts from the
diverse regulation to which they had been
theretofore subject.

What is the liability imposed upon the
carrier? It is a liability to any holder of
the bill of lading which the primary carri-
er is required to issue “for any loss, damage,
or injury to such property caused by it,”
or by any connecting carrier to whom the
goods are delivered. . . . The liability thus
imposed is limited to “any loss, injury, or
damage caused by it or a succeeding carrier
to whom the property may be delivered;”’
and plainly implies a liability for some default
in its common-law duty as a common carrier.

Il.

Illinois Central, the defendant carrier, points out that no
bill of lading was issued to Air Products with regard to the
misdelivered tank car, and that thus the only contract with
regard thereto is represented by the bill of lading issued to
the different (intended) consignee. Illinois Central forcefully
argues that the Carmack Amendment does not provide a
cause of action with regard to the misdelivered cargo, since
with regard thereto Air Products, the plaintiff consignee,
was not“the lawful holder of [a] bill of lading” who, under
the statutory language, is entitled to recover the “‘full actual
loss. . . caused by” the carrier. 49 U.S.C. §20(11) (quoted
in note 2 supra).

A-17

{2] What Illinois Central’s argument overlooks, however,
is that no claim is made that the Carmack Amendment
relationship of carrier and consignee between Illinois Central
and Air Products arose out of the bill of lading for the mis-
delivered tank car (that had been issued to a third party).
Instead, the relationship of carrier and shipper here arose
out of the issuance of a series of bills of ladings by Illinois
Central to transport the given chemical to Air Products’
premises in accordance with their terms.

The breach of the contract here urged is Illinois Central’s
delivery to Air Products, causing damage, of a tank car
concerning an injurious substance, instead of one of the tank
cars containing the proper chemicals for which the bills of
lading were issued and which Illinois Central contracted to
deliver to Air Products. The misdelivery was as much a
breach of the contract to deliver the right product in a tank
car for which a bill of lading had been issued, as a failure to
deliver or a delay in delivery of a tank car according to the
terms of the bill of lading. The carrier thus breached a
contractual duty to deliver a tank car containing the product
specified to Air Products’ premises.

Indeed, although it is well settled that the same act may
result in tortious as well as contractual-breach liability at
the election of the injured person, here the primary reason
for the misdelivery arose from the bills of lading issued by
Illinois Central to carry the intended chemicals to Air Prod-
ucts’ premises, and Illinois Central's breach, in attempted
performance of those contracts, through its mistaken delivery
of the wrong tank car.3

3. For present purposes, it is unnecessary to characterize the con-
tract breached as the entire series of bills of ladings or, instead, as only
the bill of lading issued for the tank car that next arrived and for
which, instead, the misdelivered car was furnished.

A-18

As the authorities previously noted hold, Congress in-
tended by the Carmack Amendment to provide a uniform
national remedy against carriers for breach of the contract
of carriage, including a liability for default in any common-
law duty as a common carrier. The misdelivery here in
question, in our opinion, plainly resulted from a breach
in the carrier’s duty to deliver to Air Products the right
product as intended by the bill(s) of lading issued by it.

Mo authority cited or that we have found indicates that
Congress intended by the Carmack Amendment that an
injured consignee be deprived of a remedy for breach of
contract available to him under general contractual theory.
This statutory attempt to supercede overlapping and some-
times differing state remedies for breach is nowhere shown
to have been intended to modify the common-law duties
of a common carrier under its contract of carriage, nor
to eliminate recovery for their breach simply because the
carrier issued a bill of lading. To the contrary, as the de-
cisions show, the statutory emphasis upon a carrier’s liability
under the bill of lading issued by it was, in the interests of
shippers and consignees, to centralize in one carrier - the
one that issued the bill of lading - liability for breaches in the
contract of carriage, so that shippers and consignees could
look to this one source (instead of seeking out fault from
among connecting carriers) for damages caused by any
default in the performance of the contract of carriage.

In i970, the Sixth Circuit rejected contentions similar
to those now advanced by Illinois Central and arising from
a generically identical situation. American Synthetic Rubber
Curporation, supra. No opposing decision is cited to us.
As there stated,

Under this interpretation [of the Amend-
ment], the carrier is liable not only for delay

A-19

in delivery but also for a misdelivery and the
foreseeable damages thereby incurred by the
consignee. Stated differently, the carrier is
responsible under the Act for what is de-
livered as well as when it is delivered. The
significant factor is that a carrier is answer-
able in damages for its breach of the contract
of carriage. In the instant case, appellants’
cause of action is essentially one for breach
of contract of carriage in that, due to a mix-
up of waybills, the carrier delivered the wrong
tank car. Appellants’ damages were incurred
by the abortive attempt of the carrier to
perform its contract. Except for the con-
tract of carriage, no car would have been
delivered. Except for the contract of carriage
and their reliance on it, appellants’ employees
would not have accepted a tank car of un-
known chemicals and fed them into appel-
lants’ plant facilities.

422 F.2d at 466.

We see no reason to reach a contrary conclusion and,
therefore, we affirm the district court’s decision on this
issue, which was guided by this precedent.4

4. Despite carrier dissatisfaction with the interpretation reached by
American Synthetic Congress has not seen fit to narrow a carrier’s
liability under its bill of lading as there interpreted more than thirteen
years ago. Even if we were not persuaded that the American Synthetics
construction is more consistent with the statutory purpose and Su-
preme Court jurisprudence than that advanced by Illinois Central, we
would be disinclined to adopt for this circuit an interpretation that
differs from this previously established rule.

A-20
Ill.

[3] Alternatively, Illinois Central argues that, even if
the Carmack Amendment does recognize a cause of action
for damages resulting from the present misdelivery, Air
Products has not borne its burden of proving that the parti-
cular damages sought are recoverable. It relies upon the
rule that recoverable damages only include those reasonably
within the contemplation of the parties at the time they
made the contract, so that therefore “special damages” not
readily foreseeable as the ordinary and natural consequences
of the contractual breach are not recoverable unless the
carrier had notice or knowledge of the special circumstances
from which such damage would flow. See, e. g., Marquette
Cement Manufacturing Company vy. Louisville and Nashville
Railroad Company, 281 F.Supp. 944, 941-49 (E.D.Tenn.,
1967), aff'd 406 F.2d 731 (6th Cir. 1969).

In rejecting this argument, the district court found that,
under the present facts, it was foreseeable to employees of
Illinois Central that damages such as those sustained would
result from a misdelivery of product. The facts included
the knowledge of the railroad employees that Air Products
immediately unloaded all deliveries of chemicals into its
800,000-gallon storage tank, since it was not feasible to do
more than impurity-testing or to have tank cars (17 a month)
pile up while awaiting bills of lading or more extensive
chemical testing. The district court concluded that, even
without knowing the exact properties of the chemicals
delivered, the railroad employees should reasonably have
anticipated, under the facts known to them, that a mixture
of chemicals would result in contamination of the entire
contents of the large storage tank, and that it would cost
money to rernove the decontamination.

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We are unable to hold that these primarily factual de-
terminations by the district court are clearly erroneous,
Fed.R.Civ.P. 52(a), and therefore affirm them.

Conclusion

Accordingly, we AFFIRM the judgment of the district
court.

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APPENDIX C

IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT

No. 82-3356

AIR PRODUCTS AND CHEMICAL, INC.,
Plaintiff-Appellee,

versus

ILLINOIS CENTRAL GULF RAILROAD COMPANY,
Defendant-Appellant.

FILED JANUARY 31, 1984

Appeal from the United States District Court for the
Middle District of Louisiana

ON PETITION FOR REHEARING AND SUGGESTION
FOR REHEARING EN BANC

(Opinion December 16, 1983, 5 Cir., 198_, _.-_ F.2d
)

(January 31, 1984)
Before TATE, Circuit Judge, and DAVIS*, District Judge.**
PER CURIAM:
(x) The Petition for Rehearing is DENIED and no member

of this panel nor Judge in regular active service on the Court
having requested that the Court be polled on rehearing en

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banc, (Federal Rules of Appellate Procedure and Local
Rule 35) the Suggestion for Rehearing En Banc is DENIED.

() The Petition for Rehearing is DENIED and the Court
having been polled at the request of one of the members of
the Court and a majority of the Circuit Judges who are in
regular active service not having voted in favor of it, (Federal
Rules of Appellate Procedure and Local Rule 35) the Sug-
gestion for Rehearing En Banc is also DENIED.

() A member of the Court in active service having re-
quested a poll on the reconsideration of this cause en banc,
and a majority of the judges in active service not having
voted in favor of it, rehearing en banc is DENIED.

ENTERED FOR THE COURT:

/s/ Tate
United States Circuit Judge

*Judge Davis participated by designation in the oral argu-
ment of this case as a United States District Judge for the
Western District of Louisiana. Since that time he has been
appointed as a Fifth Circuit Judge.

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385010_3000%3A1. Public record. Not legal advice.
