Judge Finds Bad Faith Claim Against Shipper Preempted By Federal Law

MILWAUKEE – Concluding that a count for bad faith denial of an insurance claim against a shipping company was “closely related to the performance of the contract” with the shipper, a Wisconsin federal judge on Aug. 3 ruled that the claim was preempted by Carmack Amendment to the Interstate Commerce Act (Marshall W. Nelson & Associates Inc. v. YRC Inc., No. 11-C-0401, E.D. Wis.; 2011 U.S. Dist. LEXIS 85718).
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