Pennsylvania Insurance Company v. Federal Express Corporation
Split Score
What is a Split Score?
This score (0-100) indicates how likely this case is to be reviewed by the Supreme Court based on:
Case Summary
Disposition
Affirmed
Pennsylvania Insurance Company, as subrogee of the Breslows, sued Federal Express after a $250,000 watch went missing during shipment, asserting several state-law claims and a breach-of-contract claim. The Eighth Circuit affirmed the district court’s judgment limiting FedEx’s liability to $100, holding that most state-law claims were pre-empted by the Airline Deregulation Act, no actionable conversion occurred, and that FedEx breached the delivery contract but could enforce its contractual liability cap.
Circuit Split Identified
Legal Issue
Whether the term "service" in the Airline Deregulation Act’s pre-emption clause (49 U.S.C. § 41713(b)(1)) covers the entire contractual arrangement between a carrier and a shipper or only operational aspects such as frequency and scheduling of transportation.
Circuit Positions
Narrow construction – "service" refers only to operational details such as frequency and scheduling of air transportation.
Broad construction – "service" encompasses the entire contractual arrangement between carrier and shipper, including package-handling procedures; therefore many state-law claims are pre-empted.
Conflict Summary
The Ninth Circuit construes "service" narrowly to encompass only operational matters like scheduling and frequency of transportation, while the First, Second, Fifth, Sixth, and now Eighth Circuits interpret "service" broadly to include the bargained-for contractual relationship and handling of packages. This broader reading results in wider federal pre-emption of state-law claims affecting carriers’ package-handling practices.