Admiralty Island Fisheries, Inc. V Millard Refrigerated Services, Inc.

2007 WL 4051649 (2007)

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Nature of the Case

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Facts

D operates cold storage warehouses throughout the country. Ps have all stored seafood products in a D warehouse. As each truckload of seafood was delivered by the Ps to D. D issued a warehouse receipt. The warehouse receipts contain the parties' agreement regarding the storage of the seafood product. The front of the warehouse receipts contain the following provision, in all capital lettering: Limitation of liability: Unless the depositor declares a valuation higher than $.50 per pound or $12.00 per cubic foot for stored goods and such declared higher value is agreed to in writing by the warehouseman, the warehouseman's liability for loss or damage thereto shall be expressly limited as specifically set forth in Section 10(e) of the standard contract terms on the reverse side hereof. The front of the warehouse receipt also provides The goods listed hereon in apparent good order, except as noted hereon (contents, condition, and quality unknown) subject to all terms and conditions herein and on the reverse hereof. Such property to be delivered to the Depositor upon the payment of all storage, handling, and other charges. On the back were provisions that D’s liability was limited to the lesser of the actual cost to replace or to reproduce, and the cost of transportation or the fair market value on the date the depositor was notified, or 50 times the monthly storage charge or the lesser of the $.50 per pound or $12.00 per cubic foot. The back also stated that these limitations on liability would be the Depositor's exclusive remedy against D with no incidental, special, punitive or consequential damages. D discovered inventory was missing. D discovered that its employees stole some of the seafood and terminated five of them for theft. National Fire (P) claimed that 94,000 pounds were stolen by employees of D. D invoked the agreement under which it was responsible for $.50 per pound.