Printable Format84-7-309. Duty of care; contractual limitation of carrier's liability. (a) A carrier that issues a bill of lading, whether negotiable or nonnegotiable, shall exercise the degree of care in relation to the goods which a reasonably careful person would exercise under similar circumstances. This subsection does not affect any statute, regulation, or rule of law that imposes liability upon a common carrier for damages not caused by its negligence.
(b) Damages may be limited by a term in the bill of lading or in a transportation agreement that the carrier's liability may not exceed a value stated in the bill or transportation agreement if the carrier's rates are dependent upon value and the consignor is afforded an opportunity to declare a higher value and the consignor is advised of the opportunity. However, such a limitation is not effective with respect to the carrier's liability for conversion to its own use.
(c) Reasonable provisions as to the time and manner of presenting claims and commencing actions based on the shipment may be included in a bill of lading or a transportation agreement.
History: L. 2007, ch. 90, § 25; July 1, 2008.
KANSAS COMMENT, 1996
The first sentence of subsection (1) is somewhat misleading in that it appears to impose on carriers liability only for negligence, but the second sentence continues unaffected any stricter standard imposed either by statute or case law. In Kansas, the standard is one of strict liability both by statute, K.S.A. 66-304, and case law, Nolan v. Auto Transporters, 226 K. 176, 597 P.2d 614 (1979). Under K.S.A. 66-304, liability cannot be limited by contract. See First Nat'l Bank v. Bankers Dispatch Corp., 221 K. 528, 562 P.2d 32 (1977). K.S.A 66-304, of course, applies only to intrastate shipments. See Browne v. Union Pac. R. Co., 113 K. 726, 216 P. 299 (1923), aff'd 267 U.S. 255, 45 S. Ct. 315, 69 L.Ed. 601 (1925); First Nat'l Bank v. Bankers Dispatch Corp., supra. Liability of the carrier for interstate shipments is controlled by the Carmack Amendment to the Interstate Commerce Act, 49 U.S.C. § 20(11). Liability under the federal rule, like liability under the state common law decisions, is excused if the carrier can show that the damage was caused by the act of God, the public enemy, the act of the shipper, public authority, or the inherent vice or nature of the goods. See Missouri P. R. Co. v. Elmore & Stahl, 337 U.S. 134, 84 S. Ct. 1142, 12 L.Ed.2d 194 (1964).
Subsection (2), permitting the carrier to limit recovery to the value stated in the bill on which the freight charge is based, is in accord with prior Kansas law. Kennedy v. Atchison, T. & S.F. R. Co., 104 K. 129, 368, 179 P. 314, amended 104 K. 708, 181 P. 117 (1919). The consignor must be able to declare a higher value, however.
Subsection (3) is new to statutory law in Kansas, but is in accord with prior case law. Kalina v. Union Pac. R. Co., 69 K. 172, 76 P. 438 (1904); Atchison, T. & S.F. R. Co. v. Morris, 65 K. 532, 70 P. 651 (1902).
Revisor's Note:
Former section 84-7-309 repealed by L. 2007, ch. 90, § 78 and the number reassigned to the current text.