FULFILLMENT SERVICES v. UPS
The Ninth Circuit Court of Appeals today released an opinion in FULFILLMENT SERVICES v. UPS, No. 06-15970, a federal appeal. The panel consisted of Barry G. Silverman, M. Margaret McKeown, and Richard C. Tallman, Circuit Judges.
McKEOWN, Circuit Judge:
The Interstate Commerce Act (”ICA”) was adopted to bring uniformity to shipping regulations previously governed by inconsistent state laws. George W. Wright, Slouching Toward a Morass: The Case For Preserving Complete Carmack Preemption, 1 DePaul Bus. & Com. L.J. 177 (2003). Historically, the Interstate Commerce Commission had responsibility for enforcing the ICA. Continuing the deregulation initiatives begun in the 1970s and early 1980s, in 1995 Congress passed the Interstate Commerce Termination Act (”Termination Act”), which abolished the Interstate Commerce Commission and transferred primary responsibility for enforcement of the ICA to the Surface Transportation Board (the “Board”). The Motor Carrier Act (”MCA”) is among the ICA provisions whose enforcement was transferred under the Termination Act. This case concerns the availability of a private civil remedy for violations of the MCA, specifically establishment of shipping rates in the trucking industry. In particular, we consider whether, under § 14704(a)(2), a private party can sue for violations of § 13703. See 49 U.S.C. § 14704(a)(2); 49 U.S.C. § 13703. We hold that § 14704(a)(2) provides for a private cause of action, but that a plaintiff must allege actual damages arising from the violation in order to state a claim successfully. BACKGROUND United Parcel Service (”UPS”) describes itself as “the world’s largest package delivery company.” As a motor carrier transporting goods interstate, UPS is subject to the jurisdiction of the Secretary of Transportation and the Board and is governed by certain substantive provisions of the MCA. See 49 U.S.C. § 13501. Fulfillment Services, Inc., a freight ship. . .