§11706 Liability of rail carriers under receipts and bills of lading

Summary

Rail carriers must give a receipt or bill of lading when they take property to move. The carrier that gives that paper and any carrier that delivers the goods must pay for the actual loss or damage to the property if the loss was caused by the carrier that received it, the one that delivered it, or another carrier whose route the goods traveled in the United States (or from the U.S. to a neighboring foreign country under a through bill of lading). A carrier that pays the owner can get back what it paid and its reasonable legal costs from the carrier whose route caused the loss. Carriers cannot set rules or contract terms that cut short these responsibilities except in a few cases. Passenger carriers may limit baggage loss under the passenger rate. Carriers may limit liability if the shipper writes a declared value or signs an agreement, or if the shipper agrees in writing to specific deductions. Lawsuits under this rule can be filed in federal or state court in certain districts tied to the origin, destination, or where the loss happened. Carriers cannot demand less than 9 months to file a claim or less than 2 years to start a lawsuit. The 2‑year clock starts when the carrier gives written notice that part of the claim is denied. An offer to settle or a note from an insurer does not count as a denial unless it is written, says the claim is denied, gives reasons, and the insurer says it speaks for the carrier.