Opinion of the German Reichsgericht in the Matter of G., Defendant-Appellant v. St., Plaintiff-Respondent

RGZ 103 82 (1921)

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Opinion of the German Reichsgericht in the Matter of G., Defendant-Appellant v. St., Plaintiff-Respondent

Germany Reich Court
RGZ 103 82 (1921)

Facts

St’s (plaintiff) agent arranged for the shipment of 17 cases of cigars by M (defendant), a freight forwarder in Mannheim, Germany. Only 16 of the cases arrived. St sued M for 5,166 marks, the value of the missing case of cigars. M moved to dismiss the complaint, contending that because all the Mannheim freight forwarders had previously declared a limitation on liability for shipments to 60 marks, St’s claim of more than that amount was not supported by the shipment contract. The trial court sided with St, as did the appellate court, holding that while a limitation on liability was not per se invalid, the monopolistic unilateral imposition of a liability limitation by all freight forwarders was immoral and in bad faith and, therefore, invalid. M appealed to the Reich Court—the highest civil court in Germany from 1879 to 1945.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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