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During the transport of the shippers\u0027 products, a train derailed damaging the products. The case was removed to a California federal district court only to be dismissed. The district court held that the contracts between the parties did not cover claims for cargo damage.\u003C\/p\u003E\n\u003Cp\u003EOn appeal, the U.S. Court of Appeals for the Ninth Circuit held that the district court erred in its analysis. The court reasoned that the Carriage of Goods by Sea Act (\u0022COGSA\u0022) does not govern the inland transport of goods, unless the parties opted out of coverage by the Carmack Amendment to Interstate Commerce Act. The Carmack Amendment governs damage claims against motor and rail carriers, and narrowly limits the venues in which such suits can be brought. Because the district court did not consider whether the parties opted out of the COGSA by the Carmack Amendment, the Ninth Circuit remanded the case for that determination.\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes the Carmack Amendment apply to the inland leg of an international shipment?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003ENo. The Supreme Court held that because the Carmack Amendment does not apply to a shipment originating overseas under a single through bill of lading, the parties\u0027 agreement to litigate these cases in Tokyo, Japan is binding. With Anthony M. Kennedy writing for the majority, the Court reasoned that, as illustrated in \u003Cem\u003ENorfolk Southern R. Co. v. James N. Kirby\u003C\/em\u003E, when a a bill of lading requires \u0022substantial carriage of goods by sea,\u0022 like in this case, \u0022its purpose is to effectuate maritime commerce.\u0022 Under such circumstances, applying state law undermines maritime law. 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