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May 16, 2000 9:15 AM, EDT

A federal appeals court in Illinois ruled Landstar Inway is liable for freight damage that occurred in Mexico during a 1997 haul, even though the carrier’s contract contained tariff language stating it was not responsible for losses over the border.

The May 2 decision is yet another ruling in the long-running legal debate over cargo liability and whether tariffs are in effect if not specifically brought to a shipper’s attention. Lawyers said the cases would only continue to increase as lawsuits brought after the Interstate Commerce Commission was abolished reach higher levels in the court system.

Some courts have ruled that shippers are obligated to check a carrier’s tariffs when they are inserted by reference into a bill of lading. Other decisions, such as the Landstar case, have gone the opposite way.

The disparity leaves the entire matter in a legal morass that some say may ultimately have to be resolved by the U.S. Supreme Court.

For the full story, see the May 15 print edition of Transport Topics. .