This case is about the statute of limitations that applies to claims against carriers that are alleged to have lost or damaged goods shipped between a place in the United States and a place in a territory or possession of the United States, such as Puerto Rico. When cigars were lost on the inland leg of the shipment, the shipper sued the carrier, but was denied his day in court because he missed the one-year deadline for bringing suit.
The shipper appealed, and the Supreme Court agreed on January 5, 2007, to hear the case. The issue on appeal was whether a federal law, namely the Carmack Amendment, which extends the statute of limitations to at least 2 years, applies when the carrier did not issue a separate bill of lading for the inland leg. Instead, the carrier issued a "through" bill of lading for both the sea and land portion of the shipment. There is a conflict in the federal courts on this issue, and the case would have determined how quickly claims must be filed and whether shippers should secure separate bills of lading for separate legs of a shipment. However, the Court dismissed the case on a stipulation in February.