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Mason & Dixon Intermodal, Inc. v. Lapmaster Int'l LLC, No. 09-17833

By FindLaw Staff on January 20, 2011 3:15 PM

Action Regarding Damage to Interstate Carriage

In Mason & Dixon Intermodal, Inc. v. Lapmaster Int'l LLC, No. 09-17833, a diversity action regarding damage to goods in interstate carriage, the district court's order granting approval of the parties' good-faith settlement under California law is affirmed where 1) to the extent that the additional burden of a generally applicable state law did not appreciably affect a shipper's grounds for or measure of recovery against a carrier, it could not affect a carrier's calculus in setting rates, and therefore could not conflict with the Carmack Act's purpose; and 2) because plaintiff and third-party defendant were joint tortfeasors under California law, the district court did not err in applying Cal. Civ. Proc. Code section 877 and 877.6 to bar plaintiff from asserting claims for indemnity and contribution against third-party defendant after the district court granted the motion to dismiss the claims pursuant to a good faith settlement.


As the court wrote:  "Mason and Dixon Intermodal, Inc. (MDII), a motor carrier, appeals the district court's judgment in its diversity action regarding damage to goods in interstate carriage against Lapmaster, a shipper; Lapmaster's insurer, Hartford; and a freight broker, ITG Transportation, Inc."

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