Insurance Law Commons^™

Carriers - Limitation Of Liability For Negligence -True Valuation Agreement

Michigan Law Review

Approximately one-seventh of a shipment of cherries in brine was lost owing to improper stowage. Award of damages was resisted on the ground that the bills of lading provided for adjustment of claims "on the basis of the invoice value of the entire shipment adding expenses necessarily incurred," and that because of favorable market conditions existing at destination the entire value of the sound cherries exceeded the invoice value. Held, the quoted clause was not a genuine limitation agreement, which is valid, but a "true valuation" clause, which, since it may wholly exonerate the carrier from liability for negligence, …